the importance of buying a house 作文

the importance of buying a house 作文

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If you have found your dream home after a long and arduous search,it can be tempting to take the plunge and throw financial caution to the wind.Buying a house that you can't afford can lead to serious trouble,particularly with the economy in the state that it is in.
Many people are under the impression that they can afford a home just because they happen to have the cash to make a down payment and they have found a lender who will give them a big enough mortgage.But the fact is,just because a lender is willing to lend,it does not mean that you can or should borrow.Often,people tend to overlook the cost of owning a home.Apart from the down payment,there is the monthly mortgage payment,closing costs (2-5% of the cost of the house),lawyer fees,redecorating and renovation costs,the cost of maintaining a house in good repair etc.
Buying a home is an important financial milestone in your life.But there are also other things that you probably need to take care of.There is still your retirement and the kids' education to think of.And what about those dream vacations that you have always been planning?It is always a good idea to leave yourself some financial breathing room,because you are never really sure what the future might have in store.
Read on for a quick guide on how to calculate the amount of money that it is wise to spend on a house.
Before starting to house-shop,figure out your budget.Get a mortgage pre-approval - this will give you an initial rough idea of how much you can afford and your credit worthiness.The reason that it is important to figure out your budget before you go house-shopping,is because you don't want to fall in love with the wrong kind of homes that are outside of your budget.Don't get into the habit of saying "it's a perfect home but I can't afford it".If you can't afford it,it is not perfect.The trick is to find a home that fulfills as many of your requirements as possible,while staying inside your budget.
Mortgage lenders consider a variety of factors while deciding on the amount of credit that you are eligible for.The most important factor or course is your credit rating.Two other important factors that are considered are your income-expense ratio and income-debt ratio.Most lenders would prefer that your total monthly household costs are no more than around 30% of your total monthly expenses.As for debt,lenders like it if your total monthly debt is about 30-40% of your monthly income.
However,there are a lot of plans offered by mortgage lenders (such as Freddie Mac) designed for low income families.Even if your credit is not very good,and your ratios are on the high side,and you don't have a whole lot of cash for down payment,these lenders will let you borrow.But that does not mean that it is a good idea to borrow.Ultimately,you have to take responsibility for your own decisions.
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While many consider it their "right" to own a home,the fact remains that it is still a privilege with the vast majority of people in the world not even having fresh running water.However,in the developed world we have the economic freedom to make it happen.In fact,we can have more than just a home - we can have our dream home.
The first and most important reason for owning your own home is simply to have a place called Home.A home is more than just a building.It's a place where you feel safe and a place that is yours.It reflects your personality and binds a family together.It's the sense of ownership that that really sets it apart from merely renting another old apartment.
From a financial point of view it simply is the smart thing to do.We've all heard the saying that rent money is dead money.Well,this is true and every cent you spend on paying rent is a cent that you will never see again.If you spend that money that you would have spent on rent towards your own home and paying off a mortgage,its something that grows in value and builds your own net worth.
Your home is one of the most valuable asset you will ever own and the sooner you start,the sooner you can benefit.Many people are scared of the idea of committing to a mortgage,but if you are smart and get the necessary advice it really is quite a safe investment with minimal risk.
Today,its easier than ever before to own your own home.With several first time home buyer programs run by the government,even if you fall into the lower income brackets y can still afford a mortgage.These programs are run by several agencies and help is available at both the federal and state level.There's a lot of information available on the internet and even your local bank will be able to point you in the right direction.
Having a place to call your own and building a the financial security for your family are two very strong reasons to motivate you to action.Owning a home need to be a dream.Make it a reality and get on the property ladder as soon as possible.
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Owning a house is a great achievement in ones life.Owning a home is an increase in assets which you could use to apply for a huge and,invest to increase your income.Living in your own homestead feels good and more comfortable compared to a renter.Once you own a house,your minds become settled and you are able to join other members of the society in developments such as,voting and representing the society in various projects.You can cultivate the remaining space and use it for farming to to earn more money.For instance,you can plant tomatoes or green vegetables and sell them to various supermarkets.
After buying a house,you will become stable.Your children will also settle and concentrate in education without any interruption.When owning a home,kids tend to perform better compared to those of a renter especially when you vacate several times.Your children could get affected as they adopt themselves with the new places,teachers and also creating new friends making them lag behind academically.
You will be able to invest your money comfortably since there is no rent.For example,you could keep the money you spent on rent with the 401k which is tax free and create more money.Your home market value could appreciate and therefore earn yourself more money.You will feel more secured since there will be no more commitments and,fear of failing to pay the rent and being kicked out of the house.
However,you could put your home at risk of being sold once you fail to complete the payments.This could be a double tragedy since you could end up homeless and,your children could get affected especially if they are still in school.You will have to set some money aside for home maintenance and repair making you have more responsibility.Again,your home must be of certain standard value depending on where its situated.