What other factors should be considered before purchasing a home?

Answer 1

pay as much down as you possibly can.. 100% is ideal..

no more than 15 year fixed mortgage -- the payment should be no more than 1/4 of your monthly takehome pay.. dont buy into the ripoff gimmick mortgages.

Answer 2

I'm not just being sarcastic, but the number one question is can you afford it. Buying a home is a great way to build your personal net worth, but there are many expenses associated with homeownership that you do not experience with renting.

More questions to ask yourself:

What can I afford for the down payment? As stated by one of the previous respondents, the more you can pay down at the start, the better it will be for you due to having more equity (the amount of house that is "yours" versus the lender's) and having lower monthly payments. However, you can't just figure that all the cash you have on hand can be used for your down payment. For starters, you need to be able to pay costs associated with the closing of the deal. If you are unable to make a down payment of at least 20%, then you get to pay insurance on your mortgage monthly.

What can I afford monthly? Typically lenders will limit the amount of debt you can be repaying each month. This includes credit card balances, car loans, and other personal loans. They will compare your monthly income to two magic numbers 28 and 36. Lenders want all debts you pay monthly to fall under 36% of your monthly income. They also want your house payments to fall under 28% of your monthly income. A house payment includes more than just paying off the loan. Your applicable taxes will be considered in this amount, as well as the mortgage insurance mentioned.

How good is my credit? Only if you have good credit will you be able to receive the fantastic low mortgage rate being advertised. As you begin looking into the possibility of buying your house, then you should also take a look at your credit report to ascertain its accuracy. Keep all acounts current, and if you want, you can also purchase your credit score. All of this info will give you an idea of how likely a lender is to say yes to your mortgage.

How long am I going to stay in my home? This is one last good question for a homebuyer. Some people know that buying a home is a good investment, especially in an area where property values are on the rise. However, make sure that you will be staying in your home long enough to realize the benefits of this appreciation. Bankrate.com has a good selection of calculators about the affordability of a house, and also tools to help you decide to buy a home or continue renting.

Answer 3

Consider the neighborhood, taxes, schools, distance to work, physical condition of the structure inside and outside, amount of repairs, etc.

Answer 4

Job security and satisfaction are the number one things to consider......