No matter the timing of your decision to buy a home, you are likely excited about the prospect of homeownership, and maybe a bit apprehensive for the responsibility that comes with it. Here are some recommendations for you to get yourself financially and personally ready to buy your first home.
Consider Your Options
You can either begin to look at existing homes for sale or you can choose to build a new home. When you buy an existing home, you will be able to buy and move into a home immediately versus building a home and having to wait for the construction process to finish. However, an existing home can be old and may have issues and problems that you need to repair. When buying an existing home, you might have to live with the laundry room located inconveniently in the basement, for example.
There are also many different home floor plans you can choose from, whether you buy existing or build new. If you are not sure which floor plan you prefer, you could tour through various styles of pre-built or model homes to find out how each of the home floor plans flows and how each would make your life more or less convenient. Take these options into consideration as you choose a home that will fit your needs and style.
Calculate Your Budget
Another important item to consider is how much you can spend on a home. A main part of buying a home is the budget for your mortgage, including the principle and interest. You can find out how much you qualify for based on your credit and income by talking to a mortgage broker. You should also complete a personal budget worksheet to look at how much of your income you can allocate to your mortgage costs.
Don't forget to calculate other costs into your homeownership process. This includes property tax, homeowners insurance, city water and garbage bills, and upkeep and repairs on the home, including any work the home needs for it to remain habitable. For example, if the roof is aging and will need replacement soon, you will need to plan to save up for a new roof or determine how you can pay for it.
As you prepare for homeownership, consider hiring a realtor to help you with the home selection and budget calculations. They have expertise in this area and will be able to lend quite a bit of knowledge to you at no cost out of your pocket because they receive their compensation from the commission shared by the seller's agent.
Contact a company like RE/MAX Gold to learn more.Share