Purchasing a new home is exciting!
Purchasing a new home is exciting! But, it’s super important that you have a great understanding of the financials surrounding the purchase of a new home. We’ve been helping people buy and refinance homes in the greater Fort Wayne, Indiana region since 1999. One of the goals of our website is to help inform home purchasers with important information necessary to make great mortgage decisions. If you’re unable to find something on our website related to home mortgages, please contact us for a prompt and courteous response.
Should I buy or rent a home?
Should you buy a home or rent is a common financing question. The advantages of buying a home are numerous, but none is likely more important than building equity. It’s a common perception that buying a home costs more in monthly payments than renting a home. So, if you’re in a financial position to purchase a home and debating between renting or buying a home, consider you’ll be gaining equity every month for the same monthly payment or less each and every month OR you’ll be building equity for the homeowner you’re renting from each and every month.
Buying a house, how much can I afford?
You’ll want to first find out what you can afford each month and then find out your purchasing power. This allows you to hone in on the homes within your purchasing range right off the bat so you’re not spending time, effort or energy on homes outside your range. Beyond the monthly costs of home ownership, you’ll want to factor in the initial costs of purchasing a home.
Use ourloan calculatorto determine how much house you can afford.
Initial Home Purchase Costs
Down Payment - Usually 3-30% of the house purchase price. The more money you put down upfront, the greater equity you’ll build every payment you make. Also, putting more money down helps lower your monthly payment as well.
Closing Costs - Usually the closing costs range from 2-6% of the loan amount depending on the area.
Monthly Residual Home Purchase Costs
It’s important that you have an accurate idea of what to expect regarding the monthly residual costs moving forward after you purchase the home. Here are some of the things you’ll want to factor into the monthly budget for your home:
- Monthly mortgage payment
- Homeowners insurance
- Mortgage Insurance
- If applicable - Flood Insurance
- If applicable - Property taxes