Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

3 Questions You Should Ask Before Buying A House

by Luke Fields

Buying a house is an important decision. The place where you live, raise your children, and invest all of that money shouldn't be a decision that you make lightly. Instead, there are many questions you should ask yourself before purchasing a home. Here are some things to think about.

Is The Neighborhood As Good As The Home?

A mistake that many first-time home buyers make is that they don't think about the neighborhood—they only care about the house. Thus, you may find a great home, and the price is right, the house is beautiful, but the neighborhood is crummy. The schools aren't great, the people around you don't take care of their yards, and it is overall not the best place for you, but you are blinded by the beauty of the house. Don't let this happen to you. Realize that the neighborhood and the community of your home will be just as important as the house itself. Take your time to research the community and neighborhood before buying a house. Some people even choose a neighborhood first, and the house second.

What Is The Resale Value Like?

Another thing you need to consider before you purchase is the resale value of the home. You might be excited that you found a home that was in your budget, although there are things wrong with it, not realizing that the reason the house was such a good deal, or the sellers anxious to sell because it was a house that is hard to get rid of. You need to make sure that you are considering your financial investment and not just buying a house. If the house was overpriced, in an undesirable area, or has a lot of problems, it will be hard to get rid of, if and when you choose to sell.

Could You Stay Here For The Long Run?

When buying a house, you might have a strict 3-5 year plan. You might think that you will live in this house for the short run and then move onto something else. Although this is the ideal, you also need to plan for the worst. You should never buy a house that you couldn't be in for a long time. You never know where the market is going to be when it is time to sell, or if you will be able to sell at all. So although you have an ideal, ask yourself the question if you could stay for the long run? That way you won't be stuck in a place that you can't afford, don't like, or are dying to get out of.

By asking yourself these questions you can ensure that you are buying the right house for you. 


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.