Buying a New Home

Single-family homes come with choices like style, size, and neighborhood. They’re a great investment because you can earn equity for yourself. And, you may even save money since a mortgage payment can be lower than some rental rates.

When buying a home, take the following into consideration:

Purchase budget

First things first, consider your budget. Simply, how much can you spend? Take a very close look at your monthly expenses and your income to determine what you can realistically afford.

Down payment

Depending on your loan program, expect to have anywhere from 3.5 to 20 percent of the home purchase price available to make a down payment. Keep in mind, if you cannot make the required down payment (for some loan programs), you will have to pay mortgage insurance.

Maintenance costs

The cost of homeownership continues after closing on your home. In fact, you should plan to set aside anywhere from 1 to 3 percent of your home’s purchase price to cover annual maintenance.

Property taxes

Your home’s assessed value and your area’s tax rate are both considered when it comes to annual property taxes. Because single-family homes tend to have more square footage, you can expect to pay a bit more in property taxes as opposed to condo or townhouse owners.

Between determining a budget, down payments, loan programs, maintenance costs, and property taxes, taking the first step toward buying a home can seem daunting. Let American Financing take away some of the fear and confusion. Call (800) 910-4055 while rates are still low, or complete the online application. Let our expert team put your family into your new home.

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