The decision to buy a house or condo is a major step. First of all, this is probably the most expensive thing you’ll ever purchase. Because properties can appreciate or depreciate in value, you should also view a home purchase as an investment with short-term and long-term implications. As you pay your mortgage, you build equity. While it sounds like a win-win, consider these important details on ownership.
Protecting Your Home
As a homeowner, you’ll be responsible for protecting and maintaining your property. This means making sure that the house is taken care of when it comes to security and upkeep. While a security system offers some form of protection, how do you cover your property for theft, fire and certain natural disasters? You’ll need property or homeowner’s insurance to provide these protections. It’s typically required in most states, so you should talk to experienced insurance agents Bellaire TX.
Financing Your Purchase
Most people can’t afford to buy a house with cash, so they’ll need to secure a mortgage through a bank, credit union or lending company. Typically, a down payment of 20% is required for a loan, but there are various types of loans and purchasing programs that allow for a lower down payment. A lender may require you to pay for mortgage insurance in this case. Finding a lender is also a key part of the buying process.
Counting the True Costs
In addition to monthly mortgage and insurance payments, you will also pay for property taxes, something you didn’t pay as a renter or living with someone else. Consider also the costs of utility bills which may be significantly higher in a house than an apartment. Other expenses such as homeowner’s association fees and home warranties should also be factored in.
Owning a house or condo is a major step in most people’s lives. It’s one that shouldn’t be taken lightly as there are different issues with buying versus renting. There are additional costs with ownership that need to be considered before taking this step.
