Buying Your Boerne Home
Owning a home is something many people dream of. It is a place to to call their own and have the liberties and freedoms that come along with that. These dreams can often overshadow financial considerations, but when you consider buying your home, make sure that you have explored not only how you will pay for it, but how much money you will have to put into it to maintain it as well.
Once you have decided that you have your heart set on buying a home in Boerne, make sure that the amount of enjoyment you will get from it will meet or exceed your expectations for owning a home. Realistically, measure the price in relation to the enjoyment you will get out of it. If you know you will be able to enjoy it more than it will financially hinder you, start to take a look at the next steps: buying your Boerne home!
Down Payment
One of the first thoughts that come to mind when buying any type of property is the down payment. Generally, with a main residence, a buyer can put as little down as 3%. Use this percentage to help figure out how much you can afford for a down payment. Knowing this will also help you determine the affordable price range of the home.
Financing the loan
How will you pay for the home? Some home buyers are able to pay cash. If that is not applicable to you, financing the home through a lender is an option. Some stipulations that you need to be aware of if you go with a lender is that you will be expected to stay within the debt-to-income limits set by Fannie Mae and Freddie Mac. This means that your total debt payments can't exceed 36% of your gross income. To calculate DTI, add your total amount of debt payments per month (excluding utilities) to your estimated home payment, then divide that number by your monthly income before taxes. The resulting number is your DTI.
Credit Score
Another factor you will have to look at when financing your new Boerne home is your credit score. Home financing requires a score a reasonable credit score. Keep in mind: the higher the credit score, the better the interest rate.
Other Financial Considerations
With so many rivers and lakes around Boerne, you will need to find out if you will need flood insurance for the property. If so, this will be an extra cost in addition to the mandatory homeowners insurance.
Extra Expenses
Taxes, association fees, garbage collection, and lawn care are expenses that will most likely apply to your Boerne home. Additionally, keep in mind that it is not just financial expenses that will come into play. Time budgeting will also be necessary when caring for your home. Time spent performing maintenance and time taking care of unforeseen issues. Of course, the payoff is the enjoyment of home ownership in Boerne, but make sure you are being realistic about the additional time and work involved.
Owning a can be an exciting decision, but only if you are certain about how it will change your life and finances. Before you take the plunge, look at your overall financial picture. How will you finance a home purchase? And can you really afford it? Take the time to examine your finances and your options to reduce the chances of unpleasant surprises down the road.
