There are plenty of gorgeous Sacramento, El Dorado and Placer County homes for sale right now, but before you begin viewing properties, it's important to determine whether you can afford to become a homeowner right now. In a recent Forbes article, real estate research group Trulia recommends considering the following:
- Down payment - We've already examined the reasons why it's in your best interest to make a 20 percent down payment, even if you have the option the put down just 5 or 10 percent.
- Maintenance and repairs – People tend to put most of their focus on whether they can afford a mortgage, forgetting that there are other important expenses associated with owning a property. When you live in an apartment, you have the luxury of letting your landlord tend to large issues that arise, but when you own Placerville or El Dorado Hills real estate, you're responsible for these costs. Trulia recommends budgeting 1 percent of the home's purchase price annually for maintenance and repairs.
- Mortgage – "Your mortgage payment is comprised of four items: principal, interest, taxes and insurance. (Together, these are known as 'PITI.') If you have a fixed-rate mortgage, your principal and interest will remain a flat monthly fee, regardless of what's happening in the overall economy," reports the source. "However, your taxes are set by your local county government and are based on their assessment of your property." This means that they could fluctuate, so you need to determine if there's room in your budget to cover a potential increase.
Are you financially ready to become a homeowner? If the answer to that question is yes, Sacramento real estate agent Jon Hesse can begin showing you gorgeous properties in the Greater Sacramento area. And, even if the answer is no or you simply aren't sure, Jon and his team—which includes an excellent mortgage planner—can help you map out a strategy and pursue your dream of homeownership.