3 Things to do Before Buying Your First House

 

Home ownership is a goal for most Americans. But it is also at an all-time low. Millennials are waiting longer to accomplish traditional milestones of American life such as marriage, parenthood, and home buying. As surveys still show strong interest in eventual home ownership, it is likely that the next decade will see an increase in the percentage of home buyers who are looking to purchase a home for the first time. So, here are 3 things to keep in mind and accomplish before you go and try to buy your first home.
First, figure out what you can afford. With the great recession still fresh in public memory, I’m sure you all understand the importance of ensuring that you purchase a home that will be within your financial means. While it can certainly be tempting to go and purchase an expensive and large home, this could leave you very vulnerable to any unexpected financial costs. Even if you do manage to get approved for a loan, if you are spending the bulk of your monthly paychecks on your mortgage, your budget will feel very tight.
Second, figure out what you want. This can be more complicated than you might initially think. Homes are much more than simply their interior and exterior. Sure, it is important to have good ideas about things like size, design, and layout, but you will also want to examine the neighborhood and location. Finding a good home in a neighborhood where you are comfortable can lead to a much better living experience than a great one in a neighborhood that doesn’t match up with your goals. For example, if you are looking to have children, nearness to parks and public areas might be a consideration. Additionally, you should look at schools in the area around your prospective future homes. A bad school can certainly be a deal breaker.
Third, and finally, get your finances in order. This means more than just having a job with steady income. Pay down your loans, and try to make sure that your credit cards are mostly paid off. Avoid purchases that will require a credit check, as this can sometimes hurt your score. Also, collect pay stubs. You will want to not only be able to show that you are making money, but that you have a history of making money. Showing this dependable income can be a huge factor in getting a loan. Finally, save a down payment, to show lenders that you are serious about this purchase.