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Are You Poised for Growth as a Home-Based Business Owner?
Whether you're fairly new as a home-based business owner or if you have been one for several years, your business growth is highly dependent on your continued personal growth and industry-relevant learning. You may have your daily functions and...
Get Started Making Money With Your Internet Based Home Business
With the prevalence of the Internet as a way of doing business comes a fantastic business opportunity. You can easily have your own Internet based home business with no inventory to buy or stock. How is this possible you ask? Many of the Internet...
How to Stay Sane Working at Home!
It’s great working at home, being your own boss, but for some people it’s not what they expected. I’ve heard several people say they get lonely and miss being around work associates; others find it hard to stay disciplined, or they just find...
Small Home Business: Effective Ways To Reduce Your Costs
One of the advantages of conducting your own small business is you can significantly reduce your costs by controlling a few simple processes. Here are ten useful ways to reduce your business costs. 1. Network With Non Competing Businesses This...
Work at Home and Moral Leadership: What's the Connection
I had lunch recently with a close friend of mine. He said something that stuck with me. “I see a lot of leaders today who don’t seem to have convictions. They are inconsistent. They don’t really lead. They just go through the motions. But worse are...
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Home Buying – What Can You Afford?
Okay, you’ve decided to buy a home and are trying to figure out what you can afford. Before you go home buying, you need to carefully consider what you can afford as far as a mortgage payment.
Mortgage Payments
The first step you should take in determining what you can afford is to talk to a mortgage lender. In fact, the best step you can take is to go through the loan process to the extent required to get a pre-qualification letter. A pre-qualification letter tells you and a seller how big of a home loan the lender will give you.
So, once you have the loan in hand, that must be the amount you can afford? The answer is maybe or maybe not. The prequalification letter is based on a number of factors such as your earnings and credit. It is not based on a picture of your life, which can lead to problems.
Other Expenses
There is nothing worse than buying a home and straining to make the monthly mortgage payments. This situation occurs when a homebuyer relies solely on the pre-qualification letter or their own wishful thinking. You may have purchased your dream home, but don’t let the payments be a nightmare.
In determining how much you can afford to
expend on a home purchase, you must consider your overall financial situation. Although you may be in a decent financial situation at the moment, do you have future expenses that will put pressure on your finances? Such situations might include:
1. Planning to have kids in the next year or so?
2. Are your current children going to college soon?
3. If you own a business, is the financial outlook stable?
4. If you work for a company, are you reasonably sure the company is headed in the right direction?
5. Do you have any concerns regarding the dreaded downsizing?
6. If you are the sole bread winner, what would happen if you were unable to work for a few months because of health issues?
These general questions are intended to wake you up to the possibility of over extending yourself on a mortgage. Every situation is different, so make sure you take a careful look at your life to make sure you are committing to a loan you can afford now and in the future.
About the Author
Raynor James is with FSBOAmerica.org - sell and view homes for sale by owner online. Sellers list your home for free the first month.
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