In a seller’s market, it is important to keep these tips in mind.
Tip 1:
Don’t get emotional over a property you don’t own yet. A lot of buyers are over paying more than what they are comfortable with because its taking them much longer to find a home. But, its important to have a budget and stick to it.
Tip 2:
Don’t leave yourself cash poor. No matter how much you prepare, you are going to have some payment shock the first few months of your investment. If it’s going to cost you every bit of savings just to get into the house, then you may not be ready: it could cause financial issues later down the line.
Tip 3:
Be comfortable with your mortgage payment. The down payment and interest rate are far less important than what the monthly mortgage payment. it is important that you are financially stable so you can live comfortable while still accounting for savings and life’s financial surprises.
