5 Questions To Ask Yourself Before Buying A House in Roswell

Buying a house is the American dream, right? It can be a dream fulfilled and a good investment. But it can also be a financial disaster and a long-term burden. For some people, buying and owning a house just doesn’t make financial sense. So before you commit to 30 years of house payments, take a look at these 5 questions to ask yourself before buying a house in Roswell.

1. Am I Buying a House in Roswell for the Right Reasons?

The first step is to determine exactly why you’re buying a house in Roswell. Some people buy a house for the tax benefits and to plant roots. Others, however, do so just because they think that’s what is expected of them, and for them renting might be a better option. For example, a house isn’t necessarily an investment because it won’t appreciate in every case and there will be expenses as well. So before you sign the contract, you need to make sure you’re buying a house for the right reasons.

2. Will Expenses Be More Than 30% of My Net Income?

The mortgage payment is far from the only expense involved in buying a house in Roswell. You also have to factor in maintenance and repairs, insurance, property taxes, and so on. And if these expenses come to more than 30% of your net income (take-home pay), then you may not be able to afford the house. Estimates are that 39 million Americans can’t really afford their houses. And that’s usually because they didn’t take into account those other expenses when figuring that 30%.

3. Can I Really Afford to Put 20% Down?

If you want to avoid the extra expense of private mortgage insurance (PMI), then the standard down payment for buying a home in Roswell is 20% of the house’s price – a pretty big chunk of money. Paying 20% down let’s you avoid having to pay the extra expense of PMI, which can be as high as 1% of the mortgage. Suppose, for example, you’re borrowing money to buy a $300,000 a house. If you don’t pay 20%  down –  that is, $60,000 – then you’ll have to pay an additional $3,000 a year for PMI. So . . . can you really afford 20% down to save money?

4. Do I Have Enough Emergency Cash?

Further, when buying a house in Roswell, you need to keep plenty of extra cash on hand for all those inevitable emergencies. Owning a house carries with it expenses for repairs that come up – things like a leaking roof or a broken furnace. You simply can’t let these emergencies catch you off guard financially. Financial experts recommend that you have strong emergency fund before buying a house – ideally, one that will cover at least six months’ living expenses. If you don’t, then maybe you shouldn’t buy that house.

5. Will I Live Here Three to Five Years?

Don’t forget that the actual process of buying a house in Roswell has certain costs, not least of which are the closing costs, typically 2% to 5% of the purchase price. So that same $300,000 house could cost up to $15,000 at closing. And if you don’t live in the house very long and have to sell soon, you will actually lose money because there hasn’t been enough time recoup the closing costs by appreciation. So, it’s recommended that you live in a house a minimum of three to five years.

Buying a house in Roswell is the fulfillment of a long-held dream for some people, but for others, it’s just not a good idea financially. So before you take that big step, ask yourself these questions. Then if, after answering, you find that traditional house buying isn’t for you, we can offer other options. Just call us today at (404) 964-2267!

Are you ready to buy a property in Roswell? We can help! Send us a message or give us a call today! (404) 964-2267

Tania Gardere MacLeod

Roswell’s Perfect Spot Top Producing Real Estate Agent & Lacrosse Mama IT'S THE PERFECT SPOT Hi, I’m Tania (pronounced Tan - like a SUN-TANya, not TONya). Not to digress, but I get this question all the time. My husband Doug & I have lived here in Roswell since 2002 and we have 1 son and 3 girls. All of them play lacrosse, so when I’m not out showing and selling houses, doing walk throughs, attending closing celebrations, taking continuing education classes, attending seminars, watching HGTV or jogging with my dogs, you’ll find me on the side lines of a lacrosse field cheering for my kids and their teams! I’ve been in Real Estate right here in Roswell since 2007. Currently, I average about 95%+ of my business comes from referral, so it’s critical that I connect with my clients from the beginning and spend some time discussing what their goals are, so we can create a plan that makes sense for them. I’ve been able to sell homes for more money and in less time than the average agent in Atlanta. That means your house is on the market for less time, so you can move on to your next phase of life... and have more money too! Being in the top 10% of all real estate agents in Atlanta, means I’m doing more business so I deal with the majority of bumps that can come up during a transaction so that we are better prepared how to handle anything that comes our way. This is the biggest investment for most of us, and I want this to be a great experience for you too! I’m not a transactional real estate agent, I’m a FULL - SERVICE RELATIONAL REALTOR®. I am here to help you and your family (including your family pets! ) through the entire process, well before it’s time to put your house on the market to sell or time to buy a new house, and well after we’ve close on your new perfect spot to call home. Sometimes we need to come up with a plan to save up for that dream house for a year or two or even work with my lenders to craft a credit repair or improvement plan so you qualify for a better loan option and rate. Often times, my buyers have to sell first, but they don’t want to put their house on the market before they find the perfect spot to call home and buy. So we have a vicious cycle of not enough homes (or the right homes) on the market when you need to buy. Don’t worry, this is where my networking skills really help you out. I keep a secret list of homes not on the market. And many times, you can tell me a specific neighborhood you want to live in, and I can FIND someone who might consider selling to you. I go the extra mile to make sure we find or sell your perfect spot to call home. I’m your life time real estate advisor! Many referred to me as the high energy Roswell Real Estate Expert. It's where I live, work and play!

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