Ahhhh finally getting keys to your brand-new home, what a great feeling!
Feelings of pride, joy and excitement while simultaneously experiencing worry and anxiety, all on the same day. But buying your first home is no easy task, from beginning to the end the process is filled with lots of emotions, highs and lows. It’s a huge big deal!
A home by far, is one of the largest and most significant purchases you could ever make in your life. So, take the time to learn how to buy a home the right way.
The following 7 tips will ensure you are ready to own and enjoy your home:
1. Pay off any debt before starting home buying process
Having this foundation in place will help you from facing tough times when an unexpected expense or income decrease comes.
2. Save enough for a down payment
Keep in mind the higher your down payment, the lower your mortgage. First time home buyer deals often offer only 3% down instead of the typical 20%.
3. Don’t underestimate closing costs
This cost is typically 3-4% of the cost of your home which adds up fast. It is important to factor this into your budget.
4. Be able to overlook bad paint colors or outdated decor.
Know these can be changed eventually and don’t let this influence your decision! You can turn any house into YOUR home. Focus more on evaluating the things that are not easily changed such as layout, space, etc.
5. Think long term
Some questions you could ask yourself are: Is it an up-and-coming area? Are businesses around it thriving? Will it sell easily if you ever need to move?
6. Consider the neighborhood
Look for the cheapest home in a nice neighborhood instead of the most expensive one in a not so great neighborhood, because a good neighborhood makes a huge difference in the quality of life.
7. Buy a house you can afford
When thinking about your dream home, don’t compromise all of your savings or emergency money. Don’t let a competitive offer on a house you are interested in make you impulsively offer more than you can afford on a house. Remember, be patient there will always be another house!
Want to buy your first home but have debt, savings or credit challenges and need a solid plan to buy your first home?
Let me help you! Book your complimentary financial coaching session here today!