CJ de Heer is a certified REALTOR;® specializing in the Santa Cruz real estate market. For access to some of the most stunning coastal properties check out www.cjdeheer.com.
Everyone wonders what kind of financial shape they are going to be in after purchasing a home. The difference between someone who is prepared for the purchase and an impulse purchaser is the fact that if the home purchase is planned then the buyer will know what their financial position is after the sale. Making the monetary arrangements for a home purchase is one of the most important financial things that a person can ever do. If a home purchase is well planned and done from a position of intelligence and education then the purchase and subsequent living should be relatively stress free. On the other hand, if a home is purchased on impulse without any planning an owner can quickly find themselves in deep water or foreclosure and this is a horrible thing to have to go through.
There are some major mistakes that people make when preparing for a home purchase. Many of them are regarding the financial aspect of the purchase. One of the most common of these mistakes is getting into a situation where there is too much house and mortgage payments that are financially crippling. Sometimes these arrangements are entered into in good confidence and with good reason but life has a way of changing at inappropriate times and as home owners we need to be prepared for such incidents. We have seen more foreclosures in this country in the last year than ever before and this is a direct result of the prevalence of sub-prime loans and the rising cost of living.
If you are a first time home buyer then there are many costs associated with owning a home that may not occur to you at first. Property taxes, repairs, maintenance all cost the owner. Moving from a rental situation to an ownership situation can be surprising in cost. When purchasing a home is is a good idea to ask the current owners about the average monthly bills. What did it cost them to live in the home on a monthly basis. Make sure that you have these costs figured into your monthly budget along with your mortgage payments and any other financial responsibilities. Be sure that you have room to breathe financially in case of any emergencies. It always pays to have contingency plans in case they are necessary. Home owning is a great experience unlike anything else but it requires careful planning and an attention to finances. Don't sell yourself short, make sure your new home plan covers all the bases.
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