What to Know Before Purchasing a Home for a Family Member
If you are looking to purchase a home for a family member, then there are certain things you should know before signing a contract. By knowing these important tips, your family members will be able to enjoy their new home while you don't have to stress about the ongoing cost of home maintenance and taxes. Here are three important tips that you need to know.
Taxes and Maintenance
Home costs go beyond the monthly mortgage payments. Every home is going to have to deal with monthly taxes and maintenance costs. If the taxes are not paid, the home can be sold by the government. Also, as Smart About Money points out, it is important to keep up with maintenance to avoid major repairs down the road. It is important that the family member assists you with the ongoing costs of maintenance since they will have a better idea of what needs to be maintained in the house. Before purchasing the home, you and your family member should agree on each other's monthly maintenance contributions.
Rather than purchasing a home outright for your family member, you might consider co-signing for the house. When you and your family member sign a contract for a home, you are the co-signer for their mortgage. According to New Eagle Realty, co-signing a mortgage can allow someone to purchase a home when they would otherwise be denied. Keep in mind that you will be financially responsible for repaying the mortgage, but you will not have any rights to the property itself. New Eagle Realty has years of experience when it comes to home purchases with a co-signer and can provide valuable guidance.
When shopping for a home for a family member, it is a good idea to keep that family member involved in the home purchasing process. You should have a good idea of what they will need in a home. For instance, if they are an older family member, then they may require a home with a handicap accessible entrance and wide doorways for a wheelchair. Also, it may be a good idea to see if your family member will need a garage or extra storage space.
Buying a home for a family member doesn't have to be a complicated experience. As long as you understand the rights and responsibilities of a co-signer and understand the ongoing taxes and maintenance costs, you should not have any difficulties. Finally, be sure to keep your family members involved throughout the home purchasing process.
Do you have a family member with dreams of home ownership? Call 941-705-5333!