Create Your Financial Strategy Before Buying Your New Buffalo Home

Wednesday, July 11, 2012

Create Your Financial Strategy Before Buying Your New Buffalo Home

After a great 4th of July celebration last week, residents and vacationers alike are enjoying the fun and relaxing summer on Lake Michigan’s shores in New Buffalo. This quaint beach front town has always drawn in a wide range of people, from those looking to retire to its’ peaceful setting to families on vacation, and those who desire the community lifestyle that New Buffalo has to offer.

As New Buffalo Real Estate agents and advisors here at Shoreline Property Advisors, we love to point interested Lake Michigan buyers to this energetic and well rounded city. In the past few years, the New Buffalo Real Estate market (along with most cities across the nation) has experienced a lean towards buyers with great home prices and historically low interest rates. And, while we do encourage potential buyers to take advantage of this opportunity, we like to remind buyers that low home prices shouldn’t be the sole determinate for purchasing a home. Having a solid financial strategy will ensure great success in the New Buffalo Real Estate market now and in the future.

If you’re hoping to buy a New Buffalo home this summer, think through your financial strategy by asking yourself the following questions:

    - How long do I plan to live in this house?
    - Is this a vacation property I want to rent out?
    - Where do I see myself in five or 10 years?
    - Do I have to or want to make home improvements?
    - Do I want to keep cash on hand for other investments?
    - Can I take financial risks?
    - Do I want to be debt-free?

Once you’ve answered these questions, you can map out where you want to land financially after the home purchase. If you’re buying a New Buffalo home as an investment or vacation property; determining these answers are especially helpful. Your financial philosophy will help you navigate through the process of getting a mortgage loan and other various options you’ll need to decide when buying your home. Here are five tips to consider when searching for the right mortgage loan.

1. Shop for the best rates- Look at local banks as well as national lenders for find the best rates. You may even want to consider working with a mortgage lender.

2. Decide on points- Decide if you’re willing to pay for point to get a lower interest rate, or if you want to take a higher rate in order to keep closing costs down.

3. Combine different loan features- This allows you to feel comfortable with the loan as well as giving you flexibility to achieve your financial goals.

4. Don’t forget about additional costs- When applying for a loan you’ll want to factor in additional costs such as property taxes, insurance and possible homeowner’s association fees.

5. Ask about other loan terms- Oftentimes banks won’t advertise loan terms such as 20 years, but asking about it can ensure you find the right fit for your loan.

We hope these tips are helpful as you consider buying one of the beautiful homes on the New Buffalo Real Estate market! As always, we would love to hear from you so feel free to contact us today! We can answer your questions, show you some of the homes currently available in New Buffalo, and help you navigate through each step of the home buying process.

We look forward to talking with you!