Are you considering purchasing your first home? Maybe you just got married, or you got that big promotion at work. Maybe you’ve been saving and have been taking weekly drives through your favorite neighborhood, waiting to see a “For Sale” sign. Maybe you’ve thought about it, but you have no idea what goes into being ready to make a big decision like buying a home.
Below is a list I have compiled of things you’ll need to think about as you prepare to buy your first home.
Owning vs. Renting
While owning a home sounds like a great plan – and it is for most people – there are lots of extra costs to consider. Moving costs, your mortgage, closing costs, insurance, maintenance, decorating, renovations – the list goes on. With renting, you don’t have to worry about most of those items, so be sure that you’re financially ready to buy a home along with all the associated costs.
How much can you afford?
Before you buy a home, take a good hard look at your finances. Determine your price range by looking at how much you can afford monthly for your mortgage and how much you can put down initially for the down payment. It is also a good idea to create a sample monthly budget accounting for your current expenses and adding in the cost of your mortgage, increased utilities, potential unforeseen costs and be sure to include any up-front costs, like purchasing furniture or a moving truck.
Location and size
If you’re considering purchasing a home, it’s likely you’re ready to live in a certain city for an extended amount of time. It’s important to think about the area you’d like to live in. Research the crime statistics and take notice of the types of businesses in the area to make sure it’s not on the decline.
It’s also important to consider the size of your first home. Make sure you plan for enough space feel comfortable if you did add a member or two to your family while you live in this house. Don’t forget – resale value should always be top of mind when looking at houses. Be sure that you can increase value to, not one that will decrease in value in the coming years.
Give me a call, let’s set up a a 1st time buyer consultation and get you on the road to home ownership!