Buying your first home can be intimidating, even overwhelming at times. We want to do what we can to ease your anxieties and increase your financial preparation before you contact a real estate agent. Here are some tips from your personal wealth experts on buying a home for the first time.
Buying a Home for the First Time
Make a decision and stick to it
You may be unsure about buying your first home for many reasons. Is the house not one you see your family growing into? Is the financial obligation of home ownership a tough stretch? Are you not completely committed to the area or city you’re looking to buy in?
Being cautious about buying a house is healthy. Uneasiness can be a natural feeling before making a major financial commitment. However, it is important that you meet with your financial advisor, calm uneasiness, and commit to your new home.
Buying a home with a back up plan of “flipping” and selling it for a profit is not a good way to enter the home-buying process. “Flipping” houses is an entire business that requires different financial preparation and expertise.
Practice makes perfect
The first step of financial preparation for buying a home is to calculate potential mortgage payments. It’s best to keep mortgage expenses below 30% of your monthly income. However, we encourage you to remember ways to also keep your money moving. If putting 30% of your income toward a home limits the other 70% to paying bills and saving, plan to purchase a home that will require less than 30% of your monthly income.
Once you calculate the monthly cost of your future home, put the difference of it and your current housing costs into a savings account for the next few months. You can then cut back or add more as you see fit much more easily than if you were already required to pay it. Plus, you’ll be building a little savings on the side!
Be Financially Comfortable in Your New Home
Choose a home that is physically and financially comfortable for your family. Don’t let the new expense put so much pressure on your income that you can’t enjoy your brand new home!
Make an appointment for a consultation with us to start managing your personal wealth. We’ll work with you to prepare you for far more than just buying your first home. We can help you build your personal wealth to do more good.
