A home is one of the largest financial investments that individuals can make in New York and elsewhere. Unfortunately, buying residential real estate can also be one of the most complicated financial processes as well. A couple of tips may help those interested in diving into the real estate world by making a purchase.
First, it is worth purchasing a home only if the plan is to stay in the home for a minimum of three years. During the home-buying process, paying a large amount in closing costs is common to compensate the third parties who helped with completing the sale. These costs are usually between 2 percent and 7 percent of the purchase price of the house. Three years is typically enough to recoup these costs.
In addition, when determining whether to purchase a home or rent, one should focus on more than just the mortgage payment. Other costs are important to factor in as well, such as utilities, homeowner’s insurance, interest and property taxes. In addition, repairs can be hidden costs, and maintenance costs can be heftier than expected. Thus, having a strong emergency fund is beneficial before buying a home.
Buying a house can be an exciting endeavor, but it can also be frightening for those who have never experienced it. It can be just as nerve-racking the second or third time around due to the financial commitment involved. A qualified attorney can help to make sure that one’s best interests are protected during each stage of a residential real estate transaction in New York.
Source: realtor.com, “Things Financial Planners Wish You Knew About Buying a Home“, Daniel Bortz, Nov. 30, 2017