Author: Linda Cash
It seems like everyone dreams about owning a home someday. However, many people don’t appreciate all of the stress that is involved in owning your own place, and consistently making the mortgage payments. Costly home maintenance, long-term financial obligations, and even a declining neighborhood can contribute to the stress of home ownership and turn that dream of having your piece of the American Pie into a nightmare.
When you signed that home mortgage loan, you became your own landlord, and therefore have to rely on yourself if anything goes wrong with the house. People don’t understand that when you own a home, you become the plumber, painter, and if you’re adventurous enough, the roofer. If you want to score bonus points with your friends that are becoming first time homebuyers, the best gift you can give them is a gift card to a hardware shop. You might help reduce the pressure on yourself by having good homeowners insurance that will cover even the minor things in your house that break. In addition it’s always best to consult with a qualified broker before buying a home. And keep in mind it’s their job to make a profit off you so shop the any rates you’re quoted, and don’t just go with the broker that the real estate recommends. They probably eat lunch together regularly and are a team. The more you pay for the home overall the more they make. They’re not your friends, so keep that in mind. And haggle every point.
Perhaps one of the continuous pressures of owning a home is stressing about how to cover the home mortgage loan every month. Even with a steady income, making a mortgage payment can be very nerve-wracking. For most people this represents a substantial amount of their paycheck and the thought of it can be daunting. Even if you have been making your mortgage regularly, the unexpected can happen and leave you without a means to cover this expense. The loss of the home through foreclosure is devastating to most people, representing thousands and thousands of dollars in a lost investment. However if this happens, the homeowner has to make a choice to continue with the constant worry of struggling to meet the mortgage or give up the house. In the end, it might be easier for the homeowner facing foreclosure to choose to start over somewhere else. Is it possible after foreclosure to ever be able to buy a home again?
According to our source John Moel of Louisville Mortgage Lenders it is, but one would need to consult with a qualified broker or lender to be able to deduce the correct way to move forward. And yes there are brokers that handle people with questionable financial situations.
Know your neighbors before you move
One of the biggest downfalls of home ownership is living next to people who are more like the Manson Family than the Brady Bunch. Noisy, dirty, inconsiderate neighbors can make the house you once loved to come home to a place of apprehension and tension. Moving to a new rental is considerably easier and cheaper than selling and buying a new home. It is partially true when they say, “you can’t choose your neighbors”. It seems obvious to find out who your neighbors are before you buy a house. However, so few people spend any real time in their prospective neighborhood before they actually move there. Living next to thoughtless neighbors can make home ownership very stressful and there is so little you can do about it. You may have to decide if it is something you can live with or not. If you feel that the neighborhood has become unsafe for you or your children, it may be time to put the house up for sale and move on.
Before signing on the dotted line google the street address where the current home is listed. See if there are any articles about a close by neighbor from hell. Go around and introduce yourself in the hood and ask about the environment. And last but not least spend a few evening sitting in the driveway of the new home or close by and watch how the day unfolds. What’s one day’s time when you may live there for 20 years?
When you sign up for a home mortgage loan, you are accepting the liability of making a mortgage payment, every month, for the next thirty years (give or take a decade). Some first time homebuyers can feel like this alone is an overwhelming responsibility and do not fully realize everything that is entailed in home ownership. While certainly having a place of your own can be a virtual dream come true, just be sure you know what to expect and be properly equipped to handle the stress that comes with it.
And last but not least shop the loan. Even if you have bad credit shop the loan. Shop it to death and haggle everything about it.