Seven suggestions for purchasing the first suite

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One of the most important decisions of a couple is the choice of the first suite. A good choice can ensure that children enter a good school, ensure the stability of family and friends, and bring good opportunities. And bad choices can lead to financial disaster. Financing to buy a house is almost as important as buying the right house. The following suggestions can help you make the right choice:

• 1. Buy a house in a community whose income level is equal to or slightly lower than yours. In this way, you will find that your neighbors drive cars of the same grade as yours, face the same budget problems as yours, and travel resorts are also the same. If you live in a community where everyone has more money than you, you and your children may feel poor rather than rich, and you have to work hard to buy luxury cars like your neighbors, or go on vacation like your neighbors. Save yourself.
• 2. Buy a house in a place convenient for public transportation. You may feel that you can’t use public transportation now, but if the oil price soars or your income changes, using public transportation may solve your budget problems in other aspects.
• 3. Buy near schools, grocery stores, convenience stores, and any place you often walk. Walking can not only save you money, but also benefit your health and protect the environment.
• 4. Choose a house where the family can live for a long time, even permanently. The secret to finding a house that can last for a long time is often to find a house with an unfinished basement. Open spaces can provide a large amount of storage space for the present or future – if conditions permit – and you can also convert the basement into a children’s room and/or a more luxurious place.
• 5. Don’t let the loan exceed your tolerance just because the bank says you can borrow more money. You know your own consumption habits and needs. Don’t cheat the bank in order to get loans beyond the limit specified by the bank; The bank’s lending guidelines are too general. Banks are lenders. They require you to meet the loan conditions. Keep your house within the scope of loan repayment.
• 6. The more down payment, the better. If the down payment is less than 20% of the purchase price, the loan repayment cost will increase. Therefore, you should save money to make the down payment as much as possible. If your down payment can be increased by 20%, then increase it by 20%. The smaller your mortgage, the better for you.
• 7. The mortgage interest rate in 2012 was the lowest ever, so we can consider shortening the mortgage term. Not long ago, people thought 8% was a reasonable mortgage interest rate. In 2012, the fifteen year installment with the mortgage interest rate of 3.75% was equal to the thirty year installment with the mortgage interest rate of 8%. If the mortgage can be completed in 15 years rather than 30 years, it will make it possible for families to have an additional 600 square feet of living space.

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The happiness you experience in your own house comes more from your family than from the house you live in. If buying a house increases your financial burden, your family will also feel more pressure and anxiety. If the house you buy is within your scope of responsibility and there is no risk of losing the house, you will create a peaceful, peaceful and stable life for your family.