First Time Buyer

Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it. Some people have a notion that home ownership is like renting, but with the ability to have pets and paint the walls whatever color you like. These privileges are available to most homeowners, however, they come with the responsibilities of a mortgage, taxes and home maintenance. Preparing for home ownership requires you to take critical stock of your finances and your expectations.

Questions to ask yourself:

  1. Are you ready to buy your first home?

    Owning a home is big responsibility, more than just being able to decorate as you wish! It’s about being prepared to maintain it over the years and realizing that you will have to manage your finances carefully in order to take care of the necessary maintenance.

  2. How much can you afford?

    As you prepare to start the home buying process you must also maintain strong finances. Partner with a good lender to help guide you through this process and determine how much you can afford. They will run an initial analysis to give you an idea of what you can afford. They will look at a number of factors to help determine this:

    • Your monthly income

    • Your credit history

    • Your debt-to-income ratio

    • Your work history

  3. What do you want?

    Our best advice in answering this question is to be realistic. Don’t let yourself get overwhelmed and get into something you may regret or can’t afford. Each house has its own issues, some are known but most are not. Be prepared to take care of them as needed to ensure things don’t get worse. Deferred maintenance can be dangerous and end up costing you more in the long run. Our best advice is to find something that finds your needs first in a desirable area, then, if financially feasible start adding in some of your extra wants. Do your best not to go overboard! As you grow, you’re needs will change, so just remember, this just your first house.