Decisions to make when purchasing a home.

1 Flares 1 Flares ×


mortgage trends

After the decision to search for homes that needed work, we had to go ahead and decide how much money we were willing to spend for a mortgage payment each month.  This is something that’s very personal- and I would not ever tell you what to do, but I will say to look very carefully at your financial situation when you are given that amount of house you can “afford.”  For us, we were told that we could afford a house more than triple what we felt we could afford- and that was with both of us working full time….and no children.  We sat down and factored in what our utilities might be on a house that size, and also what the property taxes would be (in Connecticut, they are high!) Once we knew what we could afford, we started looking around in our target areas- and quickly realized that to be able to afford the home and be able to have the cash to fix things, we were going to have to rethink how much we’d be placing as a down payment.  For us, what the bank said we could afford and what the reality of our budget was were very, very far apart.  Sure, we could have afforded that number the bank gave us- but we’d not have any money to pay for food, nor utilities, nor gas for our vehicles, let alone property taxes.  We opted to go with a number that WE felt we could live within based on what our budget and expenses were each month.


When you buy your first home, regardless of size, location, or price, many people decide or have to purchase mortgage insurance.  There are reasons for purchasing this insurance, and it is meant to offer a financial guarantee the lender should the buyer default on the loan- it will help to decrease or eliminate the loss for the lender altogether. It kind of makes things more “even” on the risk scale for the borrower and the lender. For many first time home buyers, private mortgage insurance is almost always required if you are putting down less than 20% of the mortgage.  For us, mortgage insurance was a way to ensure that we COULD get into our first home, and also have the funds available to do necessary renovations- we were buying a fixer-upper that ultimately we had to “gut” and had we put that entire 20% or more down and not done the mortgage insurance, we’d have had to end up taking out a second mortgage or a homeowner’s loan, neither of which we wanted to do. There are many resources available to help you find out about mortgage insurance options- Genworth financial has a very comprehensive section about purchasing mortgage insurance. This article about planning your first move may be helpful to you as you start this journey.

What are some of the things that you look for when purchasing a home?  Be sure to also read the post about what made us decide to purchase life insurance policies

 

 

This is a supported post with information provided by Genworth Financial. All thoughts and opinions are my own.

 

Google+ Comments

About the author: I’m a 30-something mom to three, brand ambassador. content creator, social media maven, blogger extraordinaire, earth lover, butcher, baker, candlestick maker (or something along those lines) – love word games, crafting, cake decorating or shooting pictures.

442 comments… add one

  • thanks for the post good advice

    Reply
  • Thanks a lot I have printed this out as we are looking right now and this is so helpful.

    Reply
  • This is a great post since we are looking into buying our first house in the next year! Thank you!

    Reply
  • This was one of the more interesting blogs that I’ve read. Thanks for sharing the truth about how they over state the amount you can afford. The handy man specials are the best ways to go, most of the time, unless your husband is like mine…lol. He starts projects, but almost never finishes them! lol Thanks again for this well written blog. :)

    Reply
  • It will still be awhile before I’m able to purchase my first home, but these are some great tips that I’ll definitely use when the time comes!

    Reply
  • If you are building a home or doing renovation work and need a contractor I highly recommend paying the membership fee and going to Angie’s List.com for some real reviews of contractors, good and bad.

    Reply
  • thanks for the post like it alot

    Reply
  • I think it is so important for people who are buying a house to do up a budget first and calculate everything in with the morgage to actually see for themselves if they are earning enough money to go ahead with the deal.Your comments ring so true and you gave great advice.Thanks

    Reply
  • I love this momma’s bargains and want o thank you for hosting such a great prize.I really want to gift it to my husband who has trouble walking and getting out.It would be so wonderful for him to socialize.

    Reply
  • LOVED YOUR HELPFUL HINTS

    Reply
  • This is great information especially for the first-time homebuyer.

    Reply
  • it’s important to look at the traffic on the roads near the house.

    Reply
  • Something to remember, is if you choose a house that needs work, remember to allow a 20 to 30% buffer in your renovation project since most projects tend to run over due to unforeseen problems.

    Reply
  • i am trying to sell 3 properties now, so i can move out of state to fl. i hate the process. b/c of the new credit requirements, b/c i am semi-retired, it will hurt me….to get a loan. otherwise i have excellent credit. this will be my 3rd home, i want to build a forever home. thank goodness, i dont need pmi anymore.

    Reply
  • Such great information. I think so many new home buyers are at a disadvantage with limited info. This article really helps!!

    Reply
  • Great information especially for a first time homebuyer or someone out of the market for awhile will share with friends thanks you.

    Reply
  • Oh gosh, this is a decision I’m really afraid of making at some point down the line.

    Reply
  • eexcellent info on homebuying, thankyou!

    Reply
  • Just dropping by to say thank you, for sharing such valuable information, and doing this research.

    Reply
  • Thank you, for sharing such valuable information, and doing this research.

    Reply
  • Thanks for the good information, we currently are looking into buying a home, so any insight is better than none!!

    Reply
  • Staying within your budget is so important. Great that you could make so many repairs with family help!

    Reply
  • Thank you for the great tips.

    Reply
  • Wow

    Reply
  • Aw yes! I remember going through most of the steps! Big decision! Thanks for your approach very well done!

    Reply
  • We had an inspector, check out our home before we bought it, most everything was good, but that is really the best way to go. Very helpful information you gave to those buying a home.

    Reply
  • This is some great honest advice, thank you for sharing! My Mom owned a Condo and we ended up loosing it and a lot of money with it. I am too afraid now to buy a house in my own personal situation. I have to say the HandyMan idea is a good one! Coming from a independent contractor and his wife (me) it is the cheapest and also the best quality way to go. Plus Cash is always going to save you money in the end when you are purchasing services or actually anything. I don’t really believe in credit much anymore. Good Luck to you! To find a decent Handy Man ask neighbors, and community members as word of mouth is the best advertising. Angie’s List can be very reliable but consumers have to pay to use it.

    Reply
  • You are so right and I feel bad for the people who are misguided because this is probably the most important buy in their lives.

    Reply
  • Thanks for the great article

    Reply
  • One of the things that amazes me is how much the bank thinks you can afford and how much you can actually afford. When we were looking to buy a house it was crazy because the bank believed we would be ok paying a monthly mortgage that would not leave money for any other necessary expenses such as groceries, gas, utilities. When we did end up buying a house we made sure we would be comfortable with the monthly mortgage amount. Thank you for sharing this very informative post!

    Reply
  • VERY HELPFUL REVIEW-THANKS–BUT WHAT IS THAT WIERD FRUIT AT THE TOP

    Reply
    • That might be from the ad banner!

      Reply
  • It’s so important to know how much you can afford to spend on a house. Love that this is pointed out. it’s important to own your home, not have your home own you.

    Reply
  • Regardless, the most important thinkg to consider when you buy a house is how much you can afford!

    Reply
  • helpful! thanks

    Reply
  • Thanks for the information. Buying a house can be such an overwhelming process.

    Reply
  • So much great info in the piece!

    Reply
  • I think most people now a days want to and seem to assume that they are going to buy and move into their dream home on the first try…We followed much of what you talk about here when purchasing our first home…its not my dream home but it works for our needs now and like you said by getting a home that was a bit of a fixer we were able to get more home for the money we were comfortable spending…Very good advice in this article…thank you for sharing it with us.

    Reply
  • Very interesting! Thank you :)

    Reply
  • Good article! Thank you!

    Reply
  • I would love to own m own home. Maybe one day

    Reply
  • i wanted to build our house but decided to buy much cheaper for us

    Reply
  • Love this

    Reply
  • I’d love to build my own home in the future.

    Reply
  • I have no doubt that many will be helped with this informative post.

    Reply
  • Very informational, thanks

    Reply
  • We purchased our 2nd hm 10 yrs ago and upgraded from our first home. There were really no repairs that had to be done. We got a very good deal on our hm but did have to pay the mortgage ins. For several years.

    Reply
  • Thank you for sharing!! You guys always have something helpful to share…I have to admit that I wouldn’t know half the things I do if it wasn’t for these blogs and giveaways lol Thank you!! :)

    Reply
  • I’m so excited to be a part of your group of bargsin shoppers and frugalites!

    Reply
  • Thanks so much for the post. There ARE alot of things to consider when buying a house. I guess fixing it up is the best way and the house truly become more a part of both of you considering all the work done by the both of you… love and sweat.. lol

    Reply
  • Momma, We love your bargains too!!! God bless you!!

    Reply

Leave a Comment

1 Flares Twitter 0 Facebook 0 Pin It Share 0 Google+ 1 StumbleUpon 0 Email -- 1 Flares ×