Purchasing your dream house is a big deal.
Often, people make the mistake of rushing into homeownership. However, buying a house is a commitment, there isnt any guarantee that youre making a good investment, and there are a lot of things to do.
When buying your first home , ask yourself if this is the right time to purchase one. Dont just buy one because all of your married friends are buying or your friends have been advising you and your spouse that youre throwing away money on rent.
Buy your first house because you want to, because you and your spouse decided that you want to become homeowners, and buy only if you are financially ready.
Determine how youll be able to buy a house.
For most couples, the house is the most expensive time they will ever buy. Many couples need to get a huge loan to afford it consider the monthly mortgage you have to pay. Consider all the foreclosures that have happened so far, taking a mortgage is a serious matter.
To buy your first home, you need to have good credit, you need a steady income, and you need money to make a down payment. Home financing is not always a walk in the park, but some people can help you, so seek help from the experts.
Pay off all your debt and build an emergency fund.
Remember that aside from the mortgage, youll need funds for the maintenance and upkeep costs, and they can add up fast, without you noticing them. So, make sure that you have paid off all your existing debts if any, and make sure you have an emergency fund for at least three to six months for the possible expenses.
Save up for a down payment.
If it is not feasible to pay cash outright, save for a down payment of about 20% or higher. If still, the 20% might not be possible, your broker might be able to find first-time homebuyer program offers. Keep your options open.
Look for a house that is within your price range.
Before buying a house, you have to determine your budget and make sure you check out houses within that price range. You can check online or tell your agent what you are looking for.
Research on the location.
Dont make a decision based on the property alone. Make sure to get information around the prospective neighborhoods safety, security, quality of schools, etc. Consider your possible daily commute or gas expenses. Choose a neighborhood where you can feel safe and secure.
These are just some of the most important considerations, you can consult with your agent for additional tips.