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S1E1 | Buying a House

 “Buying a house is a lot of emotional ups and downs and a lot of paperwork. But other than that, it's not all that complicated. And I think the biggest pieces of advice is, make sure your credit score is good. That's the number one thing.”

Buying a house can seem daunting.  It’s an emotional process and a big, costly decision that financial advisors Matt Stead, Financial Advisor, George Liakakis, CPA & MSA, and Mike Callahan, CPA, CFP, & MST, discuss on their podcast.  There are a couple serious factors to consider before taking this exciting life step.  

The housing market is on fire at the moment, boasting historically low mortgage interest rates.  Some interest rates are on a 30-year fixed plan rate at a 3% rate now: down from 4% last year.  Even a 1% drop in interest dates create a great opportunity for buyers.  To contextualize, 1% doesn't sound like much, but if you took out a $500,000 mortgage, over time you’d save $100,000.  These rates will most likely stay the same for the coming 6 months, which might mean you could buy the house of your dreams if you act quickly. 

One of the biggest factors in securing a low interest rate is your credit score. You may have been advised to build up your credit score because it can help to improve your overall financial situation. However, until you get to those points in life where you're buying a car or a home, you may not really understand why the numbers on the piece of paper are so important.   Especially when it's your first house, extra costs like electricity, landscaping, and heating systems can add to the price of your new home. Getting the benefit of a better interest rate helps you have more cash flow, which helps you pay your bills and extra home-owning expenses on time.

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Wondering how the purchase of a home fits into your financial journey? The financial planners at Sachetta & Callahan are here to assist.  Contact us today.   

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