In the VSECU Blog you'll find financial and lifestyle resources to help empower possibilities for your personal success.
If you’re buying a home, it's time to get organized! A home is one of the most expensive purchases you are likely to make in a lifetime and the homebuying process can be complicated. This is the time to decide what kind of home you want and what you need to do in order to buy it. So, take a moment to consider (and write down) the steps you’ll need to take in the months to come.
A Bird’s Eye View of Homebuying Expenses If you are in the market for a new home, you are probably asking yourself “can I afford to take on a mortgage and other housing expenses?” There are a lot of expenses associated with purchasing a home. Unless you have saved the full cost of the home, you will have to finance the home, make a down payment and pay closing costs and other fees up front. Then, on an ongoing basis, you will be responsible for mortgage payments, mortgage and homeowners insurance, and taxes. If the house requires some work, you will have other costs to cover.
What You Need to Know before Financing a Rehab Home Rehab homes are a great choice for someone with the energy and skills to transform a dilapidated structure into comfortable living space. If you’ve got your heart set on buying a fixer-upper, you probably already know that the road ahead will be a little tricky. Whether you’ve taken on the project because you like a challenge, want to make a profit, or didn’t have the money to buy a finished home, understanding and preparing for the challenges you are about to face will reduce your stress and remove hurdles to success over the coming months.
Getting pre-approved for a mortgage is a great first step in buying a home, but it doesn’t ensure you will get the mortgage you want. If your lender’s appraisal indicates that your prospective home is not safe and structurally sound, you may find it difficult to get a fixed-rate mortgage with a reasonable down payment. You may also experience delays in closing as you renegotiate the value or who will conduct/pay for the repairs.
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