Home ownership is the foundation for a life of financial security and personal choice. There are many solid financial reasons to support your decision to buy a home, among the top are; equity buildup, Consider this as a renter; the tax savings on the mortgage interest alone usually makes up most of the difference between rent and a mortgage payment. Buying is 44% cheaper than renting, because mortgage rates are still low. The average mortgage interest rate in Savannah is 3.5% on a 30 yr fixed loan.
Preparing Your Finances
For most people, the home you can afford to buy ultimately depends on how much money a bank will lend you. However, you must also carefully consider your current and future expenses. Sit down and get a ballpark sense of what you can borrow based on your income and expenses. Here is a good rule of thumb to keep in mind when making your calculations:
- 36% of your income goes to pay debts. Banks generally advise that your mortgage payment not be more than 28% of your monthly income, leaving 8% for other debts like a car loan.
- 31% of your gross income goes toward taxes. That's the national average.
- 33% goes
toward everything else – food, clothes, entertainment,
vacations, as well as savings and investments that you put away for a rainy
day.
*According to Trulia.com
(real estate website) the average sale
price of a home in Savannah is $147,000
Check Your Credit Rating.
Savannah Historic
Districts Great Value & Price
Here in Savannah there are several communities with good value to fit anyone’s needs. Consider looking in the Baldwin Park, Gordonston or Daffin Park/Parkside area if you are looking for a great family community with active neighborhood associations. Or perhaps you have an empty nest and are very active in downtown Savannah events. There are many great values in the Thomas Square, Victorian District or even historic downtown Savannah, where there is opportunity to walk to most shops and restaurants. Don’t hesitate to get out and look, you may be surprised.
Your credit score will have a huge impact on what type of property you can buy,
and at what price.
It is first recommended to check your credit rating
with an experienced lending institution so that you can determine what you can
afford. If you have a poor credit rating don’t let that keep you from
talking to a lender. They can help you explore your options, you may be pleasantly
surprised. A good loan officer will be able
to help you resolve your credit challenges by setting you on a debt consolidation
plan. Even if this plan takes several months, it immediately sets you on the
path to home ownership. During this
time be careful with your finances. Now is not a good time to make sudden career changes or large
purchases. You want to approach your property purchase from a position of
financial stability.
Be Cost and Value Conscious
When shopping for your home focus on value and price,
instead of just price. When looking beyond the surface be clear about what you
want and what matters most to you. Choose your home with your heart and
your head. Neighborhoods and home size usually are important factors, however consider
your lifestyle and look in areas that fit for you. Factors that can make a big
impact on whether your house feels like your home include:- Schools
- Safety
- Traffic
- Neighbors
- Proximity to Shopping
Here in Savannah there are several communities with good value to fit anyone’s needs. Consider looking in the Baldwin Park, Gordonston or Daffin Park/Parkside area if you are looking for a great family community with active neighborhood associations. Or perhaps you have an empty nest and are very active in downtown Savannah events. There are many great values in the Thomas Square, Victorian District or even historic downtown Savannah, where there is opportunity to walk to most shops and restaurants. Don’t hesitate to get out and look, you may be surprised.
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