Continued from Home Buying Process...

Although it is really nice to think about the positive aspects of owning a home, it is also a crucial part to consider the downsides as well. Here are some of the disadvantages of home buying.

Financial Stress is a very common problem when buying a home. Coming up with the down payment, meeting regular mortgage payments, and other ongoing costs will tie up a lot of your cash and can put considerable stress on your finances. Maintenance and Higher Costs are also a big problem. Keeping your home in good shape requires time and money. You may pay more each month for housing than you did as a renter. There are also extra costs for maintenance and property taxes.

So, you've decided that homeownership is right for you. Now you need to determine if you are financially ready to buy a house.

To avoid any future surprises, you can do some financial exercises to see where you stand. They include: calculating your net worth, your current monthly expenses and your current monthly debt payments. Knowing your net worth is important because you will need this information when you discuss a mortgage with your lender. Your net worth is the amount left over once you've subtracted your total liabilities from your total assets. It will also give you a snapshot of your current financial situation and show you how much you can afford to put as a down payment.

Just remember all these notes and surely you will be able to arrive at some very good decisions in home buying. Do not rush into home buying, take some time to think and view the property first before closing a deal.

Closing day is the day when you finally have bought your home; you now take legal possession and finally get to call your new home your own. You are sure to feel great relief and satisfaction but remember that the home buying process isn't over just yet. There are quite a few things that need to be done on closing day.

Make sure that your lender will provide the mortgage money to your lawyer or title company. You must provide the balance of the purchase price to your lawyer/title company along with the closing costs. Your lawyer/title company pays the vendor, registers the home in your name, and provides you with a deed and the keys to your new home.

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