Buying homes is a task that needs a lot of research work and preparations, both mentally and financially. So, if you’ve decided to buy mobile homes, there are certain factors that you should be considering before buying your mobile home. Even though buying Mobile homes is a one time investment, there are certain things such as living expenses that would cost you even after the purchase. Whereas some other factors such as interest rates and mortgage loans are something that are equally important to consider before Buying Mobile Homes.
Here we’ve made a list of such financial factors that should be considered before buying Mobile homes.
Consider the budget
Just like before buying other assets or investing somewhere you check and consider your budget, buying a mobile home too requires you to do that. Make an estimate of your budget and make sure to choose mobile homes that are within your budget.
Even though it is going to be a one-time investment, spending all your savings and undergoing loans and debts is not a good idea under any given circumstances.
Also, mobile homes are something that depreciates in value with time, if not under continuous and proper maintenance.
Interest rates (Applicable on loan)
So, if you’re someone who’s decided to buy Mobile Homes on loan, let whatever the reason be, interest rates are something that you should keep an eye on.
Remember, mobile homes- are considered personal property rather than real property. This means the interest rates of a housing loan do not apply to mobile homes. Instead, loans for mobile homes fall under the personal loan category. Under these conditions, one can get comparatively higher interest rates and shorter terms. So, prepare yourself accordingly.
Also, while opting for loans, keep your CIBIL score, also known as Credit Score, in mind. A credit score affects the approval of a loan and also determines the interest rate.
Property valuation
Since mobile homes are not permanent dwellings, unlike the usual homes, they don’t appreciate in value.
In many places, mobile homes are considered vehicles. Even though most mobile homes are not moved once they are installed, they can be. Therefore, in most places, the value of mobile homes depreciates, just like in vehicles.
So, in case you are thinking of selling the property after a few years, which most probably you would after a certain time, you need to keep this in mind. This might make you feel like a loss in the deal but mobile homes are just that.
Mortgage & closing fees/expenses
Another issue that needs to be considered before buying a mobile home is the mortgage interest. Most traditional lenders won’t give you a mortgage to buy a mobile home.
Also, most banks don’t want the trouble of dealing with a mortgage on a mobile home. Like a car loan where the security is the car, the security on a manufactured home loan is the Mobile Home.
Mobile homes can be tied, moved, and run away with, so most lenders prefer not to give mortgage loan options. Even if they do, they charge high interests.
Unexpected cost (If any)
A checklist will help you stay organized and keep track of any costs. It can also remind you of things you may have to keep in mind before placing your mobile home.
Some unexpected costs of buying a mobile home include stamp duty and registration fee, maintenance deposit, brokerage fee, parking space, interiors, goods, and service tax. While obvious costs are there on our minds when we look out for mobile homes, we can miss out on considering some unexpected costs such as those mentioned above.
These hidden costs raise the price of the property and buyers should pay special attention to these factors as it could be a loss on their side.
Utility & Other Living costs
Utilities and other living costs are something that many people might not consider while planning to buy a property, let it be a typical home or a mobile home.
Utilities such as Electricity Bills, Gas, Water, Cable TV, and other daily necessities are something that is a must to consider while planning.
Most of us won’t be able to live without power or trash removal. Also, nowadays it is difficult to live a life without internet access for students as well as working adults.
In the rush to have a secure place to live and ensure shelter and comfort for our friends and family, sometimes we miss the realistic part of buying a home which includes the day-to-day utilities and other living costs like maintenance and taking care of it. As a result, it adds up in the financial bracket.
Final words – Money Matters
Money becomes an important factor when buying mobile homes. Mindful investments can stand tall in the list of achievements especially when it is about buying homes and making them a place of comfort after a full day of work and tiredness. Therefore, it becomes important to deal with the monetary part of it with much attention and proper guidance, if required.
Because let’s be honest, un-thought expenses don’t positively serve anyone.
