Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

Considerations For First Time Buyers

by Luke Fields

If you are a first-time buyer, there are a lot of things you won't yet know about when it comes to purchasing that first home. You don't want to make crucial mistakes that you won't know you are making until down the line after it's too late to correct them. Here are a few things that can save you problems down the road.

Don't just think about your present needs

While you will of course want to find a house that suits the needs of yourself and your family now, you also want to think about the future. Is the house going to meet the future needs of your growing family or hobbies or interests you have that may cause you to need more room? If you may want to sell the house in the near future, then you want to make sure that it will have good re-sale potential. If the house was on the market for a long time before you bought it, then find out why and make sure you can correct the issue. If it's due to the location or something similar, then you may also have a hard time selling it in the future.

Look at more than just the price of the house

When you are looking at a house, you want to pay attention to much more than just the selling price. You also want to look at any potential work that you will need to have done to the house or property to make it livable for your family. For example, if you have dogs and need a fence, then you'll want to factor this in when you are checking out a house with a large unfenced yard. You may also want to check out the average utility costs for the house since some can cost much more to upkeep than others. If the house is in a rural area, then you also want to be sure that you can get all the services you require at that location, such as Internet service.

Writing a letter when offering less can help

If you fall in love with a house that's just a bit out of your budget, writing a heartfelt letter to have given to the seller can help. They may even choose to sell to you over someone offering the asking price if your letter pulls at their heartstrings.

For more information on house sellers, talk to a professional like Ocean Beach Cottages.


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.