Buying a new home can be exciting, but extremely stressful at the same time. There are so many things to take into consideration; knowing what you can afford, getting pre-approved, and finding a qualified real estate agent to help you through the whole process. Then of course there is finding your dream home and knowing exactly what you want and don't want.
Before buying a home, take a moment to ask yourself some important questions. If you know where you stand, you will have an easier time moving forward with purchasing your next home.
- Don’t buy if you can’t stay put. If you can't commit to staying in a home for at least a couple of years, buying is probably not the best decision for you.
- Aim for a home you can afford. Make sure you know how much you can afford, don't stretch yourself too thin.
- Get professional help. A professional real estate agent can help you find the perfect home and assist you strategize the bidding process.
- Choose carefully between points and rate. When choosing the right mortgage for you, if you are planning on staying in the home for a long time it is usually better to take the points for a lower interest rate in the long run.
- Do your homework before bidding. Know what the sales trends are in the area so you have a clear estimate on what to bid. Your real estate agent can help you here.
When moving forward with buying a home, it is recommended to put a down payment of 20% on your home, although it is possible to get a loan with less down. Regardless to how much you can afford to put down, it is important to know how much house you can afford.
Dave Ramsey has some great advice for potential home buyers when making the decision to buy a home along with 3 mistakes to avoid.
Share your thoughts. Is there anything you would add? What do you wish you'd known when you bought your first home?
