Think its too hard to buy in this market? Think again...
The subprime mortgage bust has terrified a lot of people away from the housing market in Bozeman real estate. The nightly news is full with images and stories of ordinary 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. However, the news isn't all undesirable. This decay in the market has dropped prices and made housing reasonable to many fiscally reliable renters who never considered Bozemen real estate ownership to be an option.
If you find yourself house-hunting, make sure that you stick to these five simple steps to take advantage of this downturn in the market; if you don't, you could be the next depressing story in your local news.
1. Accounting for Extraneous Expenses
As with almost any primary purchase, there can be a numerous of fees associated with buying a home in Bozeman or Livingston. Charges associated with property taxes, homeowner's insurance, standard maintenance, and utilities ought to not be disregarded. In addition, if you buy a home that is part of a complex or attached to a homeowners association, you will have to pay annual fees as well. Make sure that you take these additional costs into account when you are determining how much home you can afford.
2. Acknowledging Special Assessments
Many Bozemen real estate investments require a myriad 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 property. Keep your finances in check here.
3. Getting a Manageable Mortgage
A good question to ask yourself before contacting your local banker to discuss a loan is, how much is too much? While you might be tempted to try and receive as much money as possible if you can discover a good rate, you do not want to make the mistake of taking on a loan so big that your finances will be under pressure to the point that you cannot make your payments. Traditional income multipliers are a good situation to start. If you have a single income, 3.5 times your annual salary is the maximum that you should reflect 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 contemplate 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 use, 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 preceding 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 expense, you still have to eat. It is also crucial to make sure that you start acquiring 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 unplanned costs and you can live happily ever after in your new home.
I would love to help you find the Bozeman real estate of your dreams. When you're ready, call me and we can get started on a search today. I can help with every step of the transaction from offer to closing!
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