How do I buy a home for the first time?
Homeownership is a dream that has been held dear to so many for longer than I can remember. Every individual deserves to feel confident and powerful in pursuing this goal. But it should also be one with which you can grow happy memories for years down the road. Your home will provide safety from harm or danger, serving as an anchor when times get tough. I know buying my first house was an experience I’ll never forget because it really mattered on many levels. Most important was that it was a place I could grow and flourish.
As we examine the history and the struggles that so many have endured for the right to own a home, one can’t help but feel inspired. For me, just looking at how hard my mother had to work to keep a roof over my head was an inspiration. What inspires you to want the dream of owning a home?
A trusted real estate advisor can help you work towards this dream by answering the questions below.
1. Where Do I Start?
When you’re ready to buy a home, many important decisions need careful thought. The thought process may include the length of time you plan to live in an area and what kind of commute would work best with your schedule – not to mention how much money can go towards mortgage payments each month!
According to Freddie Mac:
“To get a rough estimate of what you can afford, most lenders suggest that you should spend no more than 28% of your monthly gross (pre-tax) income on your mortgage payment, including principal, interest, taxes and insurance.”
2. How Do I Save Enough for a Down Payment?
Speaking of how much you can afford, you’ll want to know what to save for a down payment. While the idea of saving for a down payment can be daunting, there are many different options and resources that can help.
According to Business Insider, automatic savings can bring you one step closer to achieving your target down payment:
“If you receive your paycheck as a direct deposit, you may want to arrange for your company to send a percentage of each check directly into a savings account for the down payment. . . . The automatic-savings strategy makes it so you don’t have to constantly remember to save money.”
Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process. And the best part is, you may need to save less for your down payment than you think. Your agent and lender can help you understand your options.
3. How Can I Reach My Financial Goals?
Another way to increase your savings is by sticking to a planned budget. If you’ve never budgeted before, there are tools available. For example, MoneyFit.org provides a budgeting worksheet you can use to create your own plan and five rules to follow when you’re saving. They recommend you:
- Identify Goals
- Record Expenses
- Record Earnings
- Compare and Calculate
- Fix Weak Spots
If you’re already budgeting, consider finding ways to tighten your spending a bit more to accelerate your journey to homeownership. After all, putting even a little extra into your savings each month can truly add up over time.
As you set out to realize your dream of homeownership this year, know that it’s achievable with careful planning. Most importantly, let’s connect today so you don’t have to walk alone on this journey.