Montgomery, Bucks, and Philadelphia PA Real Estate

Montgomery, Bucks, and Philadelphia PA Real Estate Blog

Priscilla McDonald

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How to Avoid Major Financial Buyer Regrets

by Priscilla McDonald

Most of us HAVE to work with a budget in mind.  Let's face it, we all want a better neighborhood, nicer house, nicer yard, etc, than we can afford.  So the last thing you want to do is buy a house, move in and then hate it so much that you spend the next 5 to 10 years waiting until you can afford to get rid of it and buy something better.  Here are the major things to consider:

1.  The old rule of real estate is still true:  Location, location, location.  Pick the neighborhood first, the street second and the house last.  If you reverse the order, you may get lucky, but almost always you end up regretting your decision and have to learn to live with it.  

2.  Get pre-approved first, before you start looking.  Ask the loan officer for a mortgage payment, not just a purchase price,  Many loan officers focus on purchase price, not monthly payments and the buyer doesn't get the monthly mortgage amount until they already have found the house of their dreams. When you consider a mortgage amount, make sure you can comfortably pay that amount.  If your current housing expense is $1200 and you are looking at a monthly mortgage of $1975, test it by saving $775.00 on the first of each month too.  If this is a hardship, stress and anxiety will come every first of the month.  However, if you discipline yourself now, you will have more money in savings, improve spending habits and avoid a lot of stress and regrets.

Should I Buy a Home Now?

by Priscilla McDonald

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall down the road, while others are convinced that home prices will go up.

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have fluctuated, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, a one point rise in interest rates could cost tens of thousands of dollars over the life of your mortgage!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates while they are still available.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

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Priscilla Nieto McDonald
RE/MAX Action Realty
1126 Horsham Rd.
Maple Glen PA 19002
215-641-5833
215-358-1100
Fax: 215-641-4891