Jim Curry - Home Buyers Guide V2 Book

paycheck to paycheck — but will also ensure that you can pay your mortgage in case of job loss or major unexpected expense. A savings account can also help with maintenance and repair costs on your home. According to Bankrate.com, “a good rule of thumb is to assume that you’ll spend 2.5 to 3% of your home’s value each year on upkeep and repairs. If you buy a $250,000 home, aim to save $520 to $625 per month.

STEP 4: RESEARCH HOME SALES AND WHAT YOU CAN AFFORD

Do some research into recent home sales in the area in which you’re interested in buying a home. Find the average price, the highest prices, and the lowest prices. Look into how long they’ve been on the market. Determine what you want in a home (e.g., number of bedrooms/bathrooms, a garage, a yard, a basement, etc.) and what you can a ff ord. You can fig ure out how much you can a ff ord using online calculators that consider man y diff erent variables. In general, when it comes to conventional loans, expenses related to your home should never exceed 28% of your gross monthly income, says Susan T iff any, a retired director of Personal Finance Publications for Adults for CUNA (Credit Union National

Association). (source: Bankrate.com). HOW TO GAIN AN ADVANTAGE:

While there are many bene fi ts to renting a place over buying your own home, the advantages of owning outweigh the advantages of renting. Renting is sometimes the necessary choice, depending on your situation and needs, but it’s generally considered a short- term housing solution.

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