So you’ve found the perfect house and think you’re ready to make an offer? Before you make any big decisions, you need to think about a few things.
Buying a house is a massive expense, so you better make sure the property you’re purchasing is worth the money.
Here’s how you can make sure your dream house doesn’t turn into a nightmare:
You Could End Up Drowning in Debt
For many of us, purchasing a house will be the largest investment we make. We’ll pay a small portion of its value as down payment, but the rest of it will be bought on loan.
The moment you buy a house, you’re in debt—a debt that you will be paying off slowly, for many years to come.
The economy may be doing better today but that doesn’t mean that purchasing a house is any easier. Buying a house that is way too expensive can drown you in debt and make life very difficult.
You’re Left with No Savings
Life’s a rollercoaster; you can be doing great today and the next day, boom! You’ve gotten into an accident, you’ve been robbed, you’re slapped with unexpected medical expenses, you’re planning a funeral for a loved one—bad things happen all the time and it helps to be prepared for them.
It doesn’t make financial sense to spend everything you got on a house and be in extreme debt for the next decade. Remember, if you struggle to make your monthly payments, it only worsens the situation.
Buy a house that doesn’t eat up all your savings.
You’re Clobbered With Unexpected Expenses
When thinking about whether or not they’re able to buy a house, many people just think about monthly expenses, but there are many other costs associated with buying a house that you need to consider.
Closing Costs
The closing cost usually equates to 2-3% of the total loan. They usually include the cost of home inspections, titles fees, and other fees. In 2011, the average closing cost was $4,070—it’s not a small amount of money.
Property Taxes
These are based on state and local rates and can be very costly.
Maintenance and Repairs
Most “good” real estate investments will require maintenance costs of 1–3% of the initial value every year. Houses that weren’t assessed by home inspectors may reveal hidden costs that homeowners are unaware of.
Accurate Inspections offers reliable Home inspections NJ services. We can help identify potential problems with the property that can cost you heavily in the future. With our services you can save hundreds of dollars, if not more.
We serve in Bergen County, Essex County, Morris County, home Inspectors Passaic County, Hudson County, and Union County. To find out more about services, call at +1-973-812-5100 today!
