Benjamin Franklin once said “By failing to prepare, you are preparing to fail.” This adage proves true in many facets of life, including home ownership. In essence, you are preparing to fail, if you neglect to prepare correctly for your first home purchase. Read on for some helpful tips on how to get ready for the big step of home ownership.opens IMAGE file
Don’t become impatient, slow and steady wins the race.
Buying your first home is a huge commitment and a life-altering decision. Therefore, never rush into it. Avoid being pressured into buying a home before you can actually afford to do so with low interest rates or favorable housing prices.
Determine how much house you can afford, comfortably.
When figuring out how much house you can afford, you shouldn’t count on future income or overtime income, both of which may never come to fruition. To be sure you can afford the house you are buying, base the amount you can afford on only what you are making at the time. Also, avoid going up to your max in regards to what you can afford. You always do better if you give yourself a bit of breathing room in case your financial situation changes.
Do procure a down payment through savings.
Producing a down payment of 20 percent of your home’s value is a virtual necessity in today’s credit market. In addition to the down payment, some mortgage lenders also want proof of you having six month’s worth of mortgage payments on hand as well before they will loan you money. The lesson? Save, save and save some more, save before starting the process of buying your first home.
Purchasing your first home is a scary yet liberating experience. Although it can be a bit confusing, it is possible to make a good purchase your first time out. Follow the tips listed above and you are sure to start off on the right foot as a home owner.