Decisions to make when purchasing a home.

16 Flares 16 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

  • A good article with tips welcome.

    Reply
  • Very informative, I’m currently a renter but I hope to someday buy a home-thank you.

    Reply
  • I think these are all good questions and I’ve ‘learned” a little watching property brothers on HGTV lol. The more you educate yourself the better you’ll be able to manage.

    Reply
  • Purchasing a home comes with great responsibilities. Pretty hard at first. Nice to know what you encountered in making decisions such as this.

    Reply
  • Nice article!

    Reply
  • great advice thanks

    Reply
  • Great article with great advice :)

    Reply
  • Just make sure it has enough storage and the rooms are adequate. Also make sure your inspector does a plumbing check on all outside pipes, and drainage for sewer, etc. Can’t tell you how many times I’ve seen old, rusted pipes and sewer pipes with tree roots growing inside..bad, bad. Just minor details…

    Reply
  • nice article

    Reply
  • I’m glad I do not have to plan on buying a home today, we bought our forever home 18 yrs ago.
    willdebbie97/at/yahoo/dot/com

    Reply
  • Smart article! Lots of good advice.

    Reply
  • I like your great advice.

    Reply
  • Great info for those just starting out

    Reply
  • thanks for the great tips

    Reply
  • Great tips for the first time buyers, good post.

    Reply
  • This is wonderful for people to be aware of. I have never seen a lender before now that explained this to you. They all charge you for it, and never let you know you have this policy, since it is meant to protect them…..while you are paying for it. Finally, some honesty so that you can be in control of who you have this insurance with, and how much you pay for it.

    Reply
  • Even though I’m not in the market to buy a home, this is some really great information. I will keep this all in mind when/if my time ever comes. Thanks!!!

    Reply
  • Thank you for the advice! I wish I could find a financial institution that would give a loan to someone with no credit.

    Reply
  • Interesting!!!!! GL Everyone! I love entering giveaways. never won one tho. :-(

    Reply
  • My husband and I have purchased 2 homes so far – we were very lucky with our first house to find one we could afford and was in good condition from the original owners. We also had the PMI and also chose to include the taxes in our monthly payments. That was one of the best decisions we ever made. I was grateful to not have to worry about paying taxes. We lived in our 1st home for 5 years and we have been in our 2nd home for the past 15 + years.

    Reply
  • thanks

    Reply
  • This is all great advice :) I have only gone through the home buying process once myself and those are all great pieces of advice!

    Reply
  • very helpful indeed! will keep the points in my mind.

    Reply
  • We had to consider our budget for sure, distance to work, distance from family, yard space for kids, proximity to neighbors, property values, etc. One thing we didn’t weigh carefully was property taxes. For where we live I feel they are way too high. It’s probably because there isn’t a lot of industry in the area to subsidize taxes in our area.

    Reply
  • great advice

    Reply
  • great advice!!!

    Reply
  • Thanks for the advice. Purchasing a house is a HUGE deal, there is so much to consider.

    Reply
  • This is cool :3 awesome advice.

    Reply
  • Will keep this info handy, when ready to purchase a home.

    Reply
  • I think we are in our 4ever home now. We are in my husbands GRandfathers home that built himself. My husband grew up here. LOts of fond memories for him.

    Reply
  • Thanks for all of the excellent advice!!!

    Reply
  • You provide good tips and advice, thank you!

    Reply
  • Great advice. I’ve purchased three homes in my life and never bought mortgage insurance. I usually don’t buy warranties on things either. Now, of course, as required I do have homeowners insurance but not on my mortgage.
    Good neighbor, price, distance to town…like just for a gallon of milk. :-)

    Reply
  • Don’t buy a house unless you meet the neighbors.

    Reply
  • Great post. Good advice.

    Reply
  • my sister is looking at homes i will pass this onto her

    Reply
  • Simply qualifying for a certain amount on a mortgage does not mean that you have to utilize the full amount. It is best not to overload yourself as there are bound to be unexpected expenses that arise when you first move into a house.

    Reply
  • Very informative! Thank you!

    Reply
  • I’ve never purchased a home on my own, I always relied on my ex to take care of everything! I have so much to learn if I’m ever going to purchase my own home. This is a good place to start!

    Reply
  • We are only renting right now, so this is good to keep in mind for the future.

    Reply
  • really really good advice thanks so much

    Reply
  • Lots of good advice.

    Reply
  • Since buying a home is probably the biggest puchase and investment people will ever make,every aspect of their budget has to be taken into cosideration before signing for ownership.This is basically the advice you are giving and it’s so worth taking the time to absorb this piece of valuable info.

    Reply
  • when purchasing my home never come into my mind the practical way of being a buyer, now I got point and lesson, thanks for awesome tips..

    Reply
  • Thanks for the good advice. This should be very helpful to a first-time homebuyer.

    Reply
  • We went to look at a “fixer upper” today. All I can say is no thank you. This was more than a fixer upper. It was a gut project, down to the bone of the house. Might as well build from the ground up.

    Reply
  • We had our finances lined up before we went looking, deciding how much we could afford monthly and looking at houses in that price range.
    We did look for a house that needed work so we could get more house for less initial cost.
    One thing we did make a mistake on was our choice of real estate agent. He was a friend of a friend and didn’t listen to a thing we said as far as what we were looking for. He also was not up front with us as far as who he was representing. After he had all our information and I finally found a house, on my own, that I liked, he informed me he was working for the seller, not me.
    Nothing like fighting your agent the whole way to try and buy a house.

    Reply
  • My parents are looking as I speak and I printed info to pass along to them

    Reply
  • Your advice is very good for those wanting to p[purchase a home, particularly young couples. It’s important to look at all scenarios.

    Reply
  • Thanks again for the excellent advice.I t should be well heeded.

    Reply

Leave a Comment