Can I Afford a Candlewood Lake Home? 1 Thing to Consider Aside from Price

Can I Afford a Candlewood Lake Home? 1 Thing to Consider Aside from Price

You’ve just found your dream Candlewood Lake home for sale and can’t wait to buy it. The list price of the home is within your target price range - Perfect! 

You go to your lender and get a preapproval for a home loan, which is well within your budget. You’re all set to buy the home and spend idyllic days by the lake, but your dreams are suddenly cut short when you realize that the monthly payments which you thought were within your budget have shot up to a price you can’t afford.

Most homebuyers make the mistake of looking only at the selling price of the home when computing for monthly mortgage payments and deciding whether or not they can afford the home. They overlook one very important factor that can significantly increase the amount of their monthly payments -- property tax.

Homes prices may have gone down but the property taxes that come with them have not. That is why it is important to consider property taxes when computing for the monthly payments you will be making for a home before buying it so you know if you can still afford it.

It’s best to ask your Candlewood Lake home real estate agent about property taxes on the home you are planning to buy so you will be ready for the total monthly payments won’t be shocked to see all the other costs on top of your mortgage.

This is the formula to compute for property tax:

Town Assessment X Mill Rate

Annual Property Tax =   -------------------------------------------------

1000

Towns and cities in Connecticut use 70% of the fair market value for the property assessment. However, do not be confused with the term “fair market value” and real estate market value.  Real estate market value is one of the numbers used to calculate the taxes. Fair market value does not fluctuate, even between revaluations, unlike the current real estate market values.

On the other hand, the real estate mill rate fluctuates depending on the yearly budget votes. This especially applies for distressed homes or properties that have been staying on the market for quite some time.

It is the responsibility of your Candlewood Lake real estate agent to check the amount of property tax and include it in the computation of the monthly home payments so they can inform and prepare their buyers for it.

Buyers can also contact their mortgage lender to discuss how much the monthly payment will be.

Don’t be complacent about a home’s selling price. It may seem affordable, but if you include property taxes and other costs to the monthly payment, you might think twice. Aside from property tax, you also need to factor in insurance and association fees, if any.

Knowing the costs of buying a Candlewood Lake CT home, aside from the selling price, is your responsibility so you won’t have any regrets or be shocked with the monthly payments once you have bought the home. Your real estate agent will be able to help you with this and come up with an informed decision that also suits your budget.

If you are looking a lakefront home, check out amazing lake homes for sale in Candlewood Lake CT at http://www.CandlewoodLakeCTRealEstate.com/ and experience the wonderful lifestyle that the community offers. We can help you find the perfect home that fits your budget.

Call me, Deborah Laemmerhirt now at 203-994-4297 and let me assist you with everything you need to know about selling Candlewood Lake homes. My years of experience as a preeminent real estate professional in Ridgefield, Redding, Wilton, New Fairfield, Brookfield, Bridgewater, Roxbury, Washington, Weston, Westport, Southbury, Kent, Sherman, Easton, and Bethel, CT, combined with my dedication to providing the finest service will make it easier for you to find your dream home in Connecticut.