If you are planning to buy a home in Asheboro, Randolph County NC, make sure you are prepared before jumping into a deal and making an offer. There are many other things you need to prepare for and consider before you buy that new Randolph County NC home for sale such as:
1. Your finances. Take a look at your finances and make sure you can afford the monthly mortgage for the length of time needed to completely pay for it. Even if you can afford the mortgage, make sure you don’t end up “house rich but cash poor.” This means you have only enough money to pay for the monthly mortgage, and nothing else. You have to consider your other monthly expenses like utilities, food, car payments, insurance, medical, and other monthly bills. Before buying a big house, you first need to consider your lifestyle and spending habits. If you are the type who loves to travel for long periods, it would be wiser to consider a smaller house since it would have a lower monthly and mortgage and would require less maintenance. This way, the cash you save on mortgage payments and maintenance could go to your travel funds.
Also, you should have cash on hand which equals at least 20% of the home’s asking price for down payment. The more cash you bring in for down payment, the less monthly mortgage you would have to pay.
2. Length of mortgage. You should also consider how long you would like to pay for the mortgage. Usually, young homeowners choose the 30-year fixed mortgage rate. If you are in your senior years, it might be wiser to go for a 15-year loan instead. The best thing to do would be to list all of your financial concerns and any questions you may have about buying a home and ask your local loan officer. The language in mortgage documents might be confusing and hard to understand. It would help if someone could clearly explain these things to you.
3. Consider your Debt-to-income ratio. This is an important piece of information you should not overlook before purchasing that Asheboro, Randolph County NC home. The housing crisis made getting loans and financing a bit more difficult due to stricter guidelines, so consult with an expert Randolph County NC REALTOR regarding your financial situation. Generally, your debt-to-income ratio should not be more than 36%. This means that the sum total of your debts, including mortgage, insurance, taxes, credit cards, etc, should not equal to more than 36% of your income.
4. The length of time you will stay in the home. If you are not planning to stay in the home for at least 7 years, then you might want to consider renting instead. Purchasing a home is a huge investment and it will usually take 5-7 years before you gain equity, meaning the first 5-7 years of mortgage payments actually go towards the interest then the remaining payments are what you gain in equity. Make sure you study and analyze carefully the economic differences and whether it is more practical for you to buy or rent a home, based on your current lifestyle and condition. Think of how frequently you have moved in the past. Are you really ready to settle down now or are still unsure? Does your work require you to relocate frequently? All these things should be considered before you decide to buy an Asheboro, Randolph County NC home.
After you have considered all these factors and are now cure that you are ready to buy a Randolph County NC home, now it’s time to take the next step and look for the best Randolph County NC REALTOR to help you purchase that dream home of yours!