So, you have saved a down payment, checked your credit, researched neighborhoods and now you’re ready to buy your first home!  What an exciting moment!  Besides, you are tired of renting and you’re ready to build equity. 

But wait!!  Before you dial your realtor’s number, I want to provide you with a few tips just to really make certain that you are ready to buy.  Besides, this may be the most expensive purchase that you will make in your lifetime.

As you probably already know, purchasing a home comes with additional costs that some do not account for prior to buying.  Some of those costs include HOA fees, maintenance, new lawn equipment, pest control, new furniture, property taxes, homeowners insurance and potentially private mortgage insurance.  Not to mention, many of these costs vary year to year and can most certainly increase!  USA Insurance News for Professionals | Insurance Business America (insurancebusinessmag.com) reports that homeowner’s insurance has increased on average 20 % percent between the years 2021-2023!

I am not mentioning these hidden costs to scare you.  Nonetheless, I am mentioning them to prepare you.  I find that the best and happiest homeowner is a prepared homeowner. 

Typically, you should move ahead with purchasing a home when you meet the following criteria: 

• You are certain that you’re going to live in the home for a while, ideally 10 years or more. 
• You have at least a 20% down payment to avoid Private Mortgage Insurance (PMI).  If it’s too hard to save the 20% down payment, for your dream home, I would advise you to purchase a home with a price more feasible for you to save for the 20% down payment.
• You have either an emergency fund, line of credit or other means of paying for necessary home repairs.
• You have a stable job with additional streams of income.
• You have reserves in the bank after making the purchase.

These are just some of my tips/recommendations to prepare you for buying a home under the best circumstances.  Of course, you could proceed with a lesser down payment or with plans to move in 8 years versus 10.  However, what I am recommending here is what I find to be the most beneficial.

If you are ready to purchase and want to make certain that you have covered everything, please feel free to check out my checklist here https://leadmetomyhome.com/2024/09/07/homebuying-checklist-2/.

Lastly, once you have purchased your home and you feel comfortable, I advise that you work to pay it off as early as possible.  Just imagine, not having a monthly payment and living within that financial freedom.  It can be done.  A little extra each month will get you there.

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