Thinking about buying your first home? Here are some information and good sources to look to when preparing to purchase a home. Owning a home may or may not be the right choice for you, but if it is a goal, with careful planning, a lot of patience, and good advisers, it’s a very achievable dream!
When Planning to Buy Your First Home:
- Figure out how much you can afford:
- What you can afford depends on your income, credit rating, current monthly expenses, money you have available for a down payment, and the interest rate. You can find links to all this information in one place.
- The U.S. Department of Housing and Urban Development (also referred to as HUD) is a great source of info for the steps to take when preparing to buy a house.
- These steps include:
- Knowing your rights
- Shopping for a loan
- Learning about homebuying programs
- Getting a home inspection
- Applying for homeowner insurance
The National Association of Realtors is also a good source of info for staying up to date on the most current housing market. The website provides you with blogs, videos, and news about the housing market.
Planning Ahead
- Be open to a fixer-upper especially if you have construction skills or know someone who can help you, but be sure to have the dwelling inspected so you avoid major surprises.
- Negotiate directly with the builder to lower the percentage of interest rates—and when the rates fall, renegotiate your mortgage.
- Downsize. Sell or donate stuff that you don’t need.
- Plan far in advance. If you are going to move, speak to a representative at your bank to see exactly what your budget needs to be and what suggestions they may have to grow your budget (like a different savings account options.)