The subprime mortgage bust has scared a lot of people away from the
housing market in Goldendale real estate. The nightly news is jam-packed with images and stories of run-of-the-mill Americans who are losing their properties because they made greedy and ignorant decisions, they were taken advantage of by predatory brokers, or a combination of these situations. Nevertheless, the news isn't all unsavory. This decline in the market has dropped prices and made housing affordable to many fiscally responsible renters who never considered homeownership to be an option.
If you discover yourself house-hunting, make sure that you go along with these five simple steps to take advantage of this downturn in the Goldendale real estate market; if you don't, you could be the next sad story in your local news.
1. Accounting for Extraneous Expenses
As with almost any extensive purchase, there can be a many of fees associated with buying a home. Expenses associated with property taxes, homeowner's insurance, standard maintenance, and utilities ought to not be passed over. In addition, if you buy a home that is part of a complex or attached to a homeowner?s association, you will have to pay annual fees as well. Make sure that you take these added expenses into account when you are defining how much home you can afford.
2. Acknowledging Special Assessments
Many homes require a bunch of regularly scheduled special assessments to be performed in order to satisfy local regulations and ordinances. These are costs that are required in addition to standard property taxes. In order to make sure that these costs don't take you by surprise, obtain copies of prior bills for these services and inquire about any pending and future assessments that need to be done on the Klickitat property.
3. Obtaining a Manageable Mortgage
A good question to ask yourself before contacting your local banker to talk over a loan is, how much is too much? While you might be tempted to try and get as much money as possible if you can find a good rate, you do not want to make the mistake of taking on a loan so big that your finances will be stressed to the point that you cannot make your payments. Traditional income multipliers are a good point to start. If you have a single income, 3.5 times your annual salary is the maximum that you should think through requesting and if you have dual incomes, the maximum would be about 2.75 times your joint salary. If these amounts will stretch your budget too far, then it is a good idea to consider borrowing less.
4. Determining How Much Property to Buy
Now that you have a handle on all of the costs involved and have determined how much money you can copy, it is time to figure out just what you can afford to spend on a new home. Whatever you do, don't bite off more than you can chew; doing so could quickly lead down the road to foreclosure. Take into account your credit history, the closing costs on the loan, the amount of the down payment, and any prior debts. Weigh these against your income and savings before making a move.
5. Welcoming Your New Real Estate into Your Basic Budget
Once you have everything in order, set a budget and stick to it. While your new home purchase will undoubtedly become both your biggest asset and your biggest cost, you still have to eat. It is also vital to make sure that you start procuring a rainy day fund in case of emergencies; one of the things that accompany a new home is the potential for substantial unforeseen expenses. Set a reasonable budget that includes an allowance for unanticipated costs and you can live happily ever after in your new home.
When you are ready to buy Goldendale Washington real estate, call our offices for an indepth study of the latest homes on the market that fit what you are looking for!