A New House Readiness

A New House Readiness

Kathleen Jones

XECO/212

November 1, 2013

George Tsilis

A New House Readiness

Although I saw buying a house in my future, it is a purchase that will need to be done sooner rather than later, due to my current circumstances. In nine months a child will arrive and my current living arrangements are too small to accommodate both my child and I. This is a time for rational thinking, sacrifices, and knowing my resources. Not only will I need to look within my financial limits, but also for the future of the child. School districts will have to be taken into consideration and local services available.

Once I know the financial status of what I can be approved for and the going interest rate, I can then look for housing in areas that will accommodate our needs as a family and stay within my price range. Keeping in mind that I want to get the shortest mortgage term with the lowest interest rate. At the same time I do realize that I may not find that perfect home and will have to sacrifice some things to be able to gain the most important necessities. In the process of looking, there will be sacrifices that will have to be made to save for the down payment of the home. Cutting back on entertainment, downsizing on the sports car, saving with coupons, selling unnecessary luxury items and perhaps working a second partime job will all have to be done.

Buying a home versus renting will be an investment with advantages of building equity, saving on federal income taxes by claiming interest paid and property tax, which is an incentive in itself. Eventually the house is paid for, which cuts out rent or mortgage payments all together.