Are you Ready to Buy Your First Home?
Buying your first home is an exciting and nerve-racking process that is often long and stressful. Before you consider looking for a new home, it is important to be realistic about what you can and cannot afford. Be honest with yourself, and your real estate broker about your income, expenses, debt, and personal goals.
If you’re thinking about buying a home, first consider the debt you have already incurred. If you are buried in student loans, and credit card debt, try to minimize that debt before adding a mortgage onto your expenses. It is also important to have a good credit score to better your chances of being approved for a home loan. If you don’t have an overwhelming amount of debt, and have a reliable source of income, you are probably ready to purchase your first home. You should have a sizeable down payment ($10,000 or more) before you begin shopping around for a home. If you have minimal debt and a down payment saved, begin reserving money into an emergency fund for a greater cushion when your mortgage kicks in. Being a responsible spender with realistic budget expectations are the first steps to being ready to purchase your own home.
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