According to a nationwide survey, 1 in 4 American homebuyers regret buying the home in which they currently live. The survey – from Redfin – was conducted online by Harris Poll and involved more than 2,000 U.S. adults.
Everyone knows the economy tanked a few years ago.
“People couldn’t make the more expensive house payments, and some lost their homes. Many lost their jobs. Consequently, credit ratings of home buyers plummeted, making future purchases of all kinds more expensive,” says Rajeev Gandhi, founder of Sistar Mortgage (http://www.sistarmortgage.com/)
They thought home values would increase, and they would make a profit by not investing anything. So they didn’t make enough of a down payment and financed 100% of the loan.
And they made other mistakes. They applied for an adjustable-rate mortgage and stated the income they thought they would be making in a few years. Home values decreased. Monthly house payments increased because the financing rates of adjustable-rate mortgages increased. Many of them bought multiple homes.
“People should plan – not gamble,” adds Gandhi. “Minimizing cost and maximizing investment should be the goal for all home buyers because typically, a home is a family’s biggest investment.”
He says several things must be seriously considered:
· Down payment – Have enough that’s not borrowed.
· Reserves – Have six months worth of living expenses that include mortgage payments in case you lose your job.
· Mortgage type – Do you want a fixed payment or can you financially handle the flexibility of an adjusted-rate mortgage?
· Insurance – Mortgage insurance and/or insurance on the house and its contents.
· House plans – Do you plan on keeping the house for a few years or until your kids are grown?
· Career – Wise decisions enable consistent mortgage payments.
“Prudent planning can ensure home enjoyment for years to come,” says Gandhi.
Sistar Mortgage, headquartered in Shelby Township, Mich., is a HUD-approved correspondent lender licensed in 25 states with branches in Tex., Calif., Wash. and Kans. Sistar takes a personal approach to minimizing cost and maximizing investment for its customers. It offers conventional and jumbo loans as well as FHA, rural development and renovation loans. It also has experience with investment properties, second and vacation homes, home equity loans, self-employed borrowers and borrowers for U.S. visas. Visit www.sistarmortgage.com to learn more.
Sue Voyles, Logos Communications, Inc.
Link to Redfin survey: