With the spring home buying market around the corner, I’ve been getting a lot of questions from my pre-approved clients. With rates rising and home prices increasing they are on the fence about whether or not to pull the trigger and become homeowners.
These four questions can help you make smarter mortgage and housing choices:
1. Why is it better to buy a home right now vs. renting a house? Buying a home usually requires more upfront capital, more ongoing expenses and a longer-term commitment. Make sure to run the numbers with a professional to evaluate whether you’d be better off buying vs. renting.
2. How can I make sure this fits into my short-term and long-term budget? Make sure to compare your options when it comes to:
- Choosing a down payment amount and strategy
- Choosing a monthly payment scenario
- Choosing a price range for your new home
3. How will this financial decision impact other areas of my life? Make sure to think through how your cash flow situation will impact:
- Children’s college funding
- Retirement planning
- Taking care of elderly parents
- Other large financial purchases or commitments
4. What mortgage and home buying strategy will result in less overall financial risk? The mortgage is most likely going to be your single-largest debt, and your home is most likely going to be your single most substantial investment. That’s why it’s essential to evaluate and compare your options with a mortgage professional.
About the Author
David Reznikow is a loan officer at Fairway Independent Mortgage. A Brookline native and BHS graduate, Reznikow is currently a Newton resident but has remained part of the Brookline community. As a Brookline Chamber of Commerce Director and business member Reznikow has had the opportunity to add to the vibrancy and diversity of the business community while helping to raise funds for local charitable organizations through many Chamber initiatives. Both Reznikow’s parents have businesses in Brookline, still live in the home where they raised three children, and can often be found playing with their grandson, Cameron, at Dean Park.
