5 Questions To Ask Yourself Before Buying A House in The Northwest Valley
The American Dream: Buying a house can fulfill that dream and be a good investment at the same time. Could it also be a financial disaster or a financial burden? Let’s take a look at these 5 questions to ask yourself before buying a house in the Northwest Valley.
1. Am I Buying a House in the Northwest Valley for the Right Reasons?
The first question to ask is, why exactly are you buying a house in the Northwest Valley? There are many reasons buy a house. For some, it’s an investment or offers tax benefits. Others may want to plant roots and start a family. Before you sign the contract, you need to make sure you’re buying a house for the right reasons.
2. Will Expenses Be More Than 30% of My Net Income?
The second question to ask yourself before buying a house in the Northwest Valley is, can I afford it? The mortgage payment isn’t the only expense you need to take into consideration when buying a house in the Northwest Valley. You’ll want to account for maintenance and repairs, insurance, property taxes, and so on. And if these expenses come to more than 30% of your net income (take-home pay), then you may not be able to afford the house.
3. Can I Really Afford to Put 20% Down?
Private mortgage insurance is an expense you’ll need to consider if you are putting down less than 20%, which is pretty typical when buying a home in the Northwest Valley. You’ll pay this until your balance reaches 20%. If you’re unable to put down 20% in order to buy, don’t let that deter you. There are many down payment assistance programs available that may help. If you qualify, having someone else pay the down payment for you may very well free up some cash that you could put toward the PMI.
4. Do I Have Enough Emergency Cash?
Question number 4 to ask yourself before buying a house in the Northwest Valley-do you have emergency cash? It’s a good idea to have cash on hand for emergencies. Owning a house carries with it expenses for repairs that come up – things like a leaking roof or a broken air conditioner. Make sure you’re prepared to deal with these expenses so they don’t catch you off guard.
5. Will I Live Here Three to Five Years?
Don’t forget that the actual process of buying a house in the Northwest Valley has certain costs, not least of which are the closing costs, typically 2% to 5% of the purchase price. So that same $300,000 house could cost up to $15,000 at closing. And if you don’t live in the house very long and have to sell soon, you could actually lose money because there hasn’t been enough time recoup the closing costs by appreciation. So, it’s recommended that you live in a house a minimum of three to five years.
Buying a house in Northwest Valley is the fulfillment of a long-held dream for many, but for others, it’s just not a good idea financially. So before you take that big step, ask yourself these questions. Then if, after answering, you find that traditional house buying isn’t for you, we can offer other options. Just call us today at (602) 529-3380!
Are you ready to buy a property in Northwest Valley? We can help! Send us a message or give us a call today! (602) 529-3380
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