If you have just inspected a home on sale and felt that you found your first home, take a deep breath first. Hold on to that check and ask yourself:
Why am I buying a house?
If your answer falls between "I just want to stop renting and collecting receipts." and "I want to have my own home", chances are, you are not ready yet.
Don't forget that your home must allow personal and family growth. If buying a house limits your success and happiness, you won't be able to call it a "home" anymore.
Why am I buying that house?
According to US News , you must be able to separate needs from wants. Take for example location.
One may choose a property located nearer your work, which means more time for your family, if you arealdy have one. Others may prefer a home with everything within their reach, giving them convenience, while some other are more particular of how safe the neighborhood is.
US News notes that most younger buyers prefer to be in the urban areas, especially those who have no plans of having children. However, older families with children feel the need to settle in the suburbs.
Am I financially stable to do this?
If you respond "yes" because you have enough money for deposit and amortizations, do your Math again. Picayune Leader Gazette says that equally important expenses are often overlooked like meals, clothes, living allowance and utilities. You should also have contingency fund for immediate health needs and other emergency.
When you are positively sure that you are ready to buy a home, the below tips could come handy.
Shop Around
Don't fall for "love at first sight", according to HGTV. Shopping around and choosing the best works better. If you stop at one, you will not discover others that are cheaper but bigger, a property with a lower deposit requirement or one in a safer neighborhood.
Attend Homeownership Seminars
Don't hesitate to take part in seminars, if there are any, in your area. Karen Carr, a certified financial planner at the Society of Grownups which is a group that organizes homeownership seminars, says they help families know the really important things in life and after that "try to match their expectations with their budget," reports US News.
Slow Down on Debts
If you are planning to loan the property make your credit line more eligible for that loan, says Picayune Leader Gazette. It would be wise for you to cut down your on credit card debts so that lenders will be more trusting of your capability to pay. Debt must only be less than 40% of your monthly income.
Check out more about buying a home through a loan below.
