The Financing of Your Future

Americans devote the largest portion of their incomes to housing. Consequently, how you handle the purchase (financing) of your home will have far reaching implications on virtually every face of your financial life, including your ability to save for retirement, children’s educational expense, an emergency fund, paying off debt, and more.  

As a buyer you should work with an experienced mortgage professional who can help you make informed decisions about your financing options when buying a home. There are many different ways to finance a home, but to find the best option that fits your needs you must work with a mortgage professional who can take into account your long and short term financial and investment goals as well as your payment and equity objectives. Here are some points to consider before putting any mortgage into place. 

1. Are you familiar with how the tax advantages of a mortgage work? 
2. How long do you plan to live in your new home?  
3. Do you have a household budget?  What mortgage payment do you feel comfortable making monthly?  Remember to take into account taxes, insurance, potential repairs, utilities, and any association dues. 
4. Realistically, how much do you expect your household income to increase or decrease in the next 2 or 5 years?  Consider any adjustments in income due to promotions, relocations, or retirement. 
5. Do you foresee incurring other financial obligations with in the next 5 years, such as a new car, changing from full time work to part time, sending children to college, or expanding your family?
6. What personal goals are important to you?  Do you want to build your net worth, move to a larger home within a few years, pay of your mortgage when you retire, achieve financial freedom, invest in the market, or save money to send children to college?
7. When it comes to your mortgage, what is most important to you?  Lowest payment, eliminating other debt, lowest down payment,  or an improved credit history?