Kay Wood Mesa Real Estate

With the heightened news about interest rates at all time lows and home prices (especially Mesa AZ home prices) the lowest they have been for nearly 10 years you may find yourself asking the question “do I buy a home in Mesa or continue to rent?” Depending on who you listen to you’ll hear great arguments for buying and great ones for why it is good to keep renting. The home buying decision is a highly personal one – it is your financial future as well as your family’s future so it obviously isn’t one to take lightly. With this in mind below you will find some items to consider that you might not have thought of to help you make the right decision.

What Is My Rent Payment? With the continued low rates and low home values your monthly budget might do better with a mortgage payment rather than a rent payment. And when you consider the mortgage interest tax benefits your monthly budget as a result of being a homeowner may be just that much sweeter. While it looks good on paper to have a lower mortgage payment that a rent payment you can’t make this decision in a vacuum.

What Kind of Money Can I/We Part With For Downpayment – Unless you are eligible and considering a VA loan through a company like LowVARates.com where you won’t need any downpayment money, you will need to make sure you have at least 3% for your down payment. Homepath mortgage financing requires 3% and FHA financing requires 3.5%. Your thoughts about what you need in the bank shouldn’t stop here as you will have a few other closing costs and out of pocket expenses to consider. All total think about having 5% set aside for just the mortgage part of buying your home.

Move in Money – Immediately after closing on your mortgage you’ll probably need some additional cash to furnish your new place or at least make it have your personality to some degree.

I’m the Landlord Now – You’ll need to think hard about this item. What happens during the weekend when your pipe bursts – who are you going to call? As a renter the answer here is easy – the landlord. As a homeowner though you are the landlord so you’ll be calling yourself or the plumber to fix your pipe. This and other maintenance expenses now fall on your shoulders – so beware you’ll need extra money from time to time for emergencies and physical maintenance around the home.

What’s the Outlook For My Job and Income – No one has a crystal ball and just about anyone working for someone else stands the risk of not having a job tomorrow. So you’ll need to consider a contingency plan for yourself – like have a reserve account set aside for 3-6 months of bill money set aside in the event that you need it. Is a relocation on the horizon? Perhaps you need to ask some questions at your office to see if it makes sense to buy a place.

Do I Need To Be Grounded – This question is big for families because of the “kid factor”. A stable home leads to a better environment for children to grow up in. Living in a rented place or bouncing around from place to place can take its toll on a child. Do you want to have the freedom to make changes to your property, or have a pet without getting permission? Only you can answer these questions.

Hopefully with these items in mind you should be able to make a better determination about whether now is a good time to buy a home or not. Tell yourself the truth and don’t step over issues that you just don’t want to deal with. Buying a home is serious business so do the work up front to really come to grips of whether you should “do it or not.”