Transitioning from renting to becoming a homeowner is one of the biggest decisions you'll make in your lifetime. I'm here to help you plan ahead before you embark on homeownership by getting a budget in place and ensuring you have the savings ready!
Some of the costs of embarking on homeownership include a down payment, closing costs, ongoing home maintenance, property taxes and monthly utilities.
The key to ensuring you are prepared to home ownership is to create a realistic budget based on your goals and your purchasing timeline. Track your spending and make your dollars go further by sticking to your budget once it's in place. Setting aside your down payment and closing costs are crucial to getting a final approval in place for your mortgage financing.
Examine all areas of your life from entertainment to the type of food you buy, where you buy your food and clothes, and how and where you travel. Also look at your spending personality and make necessary adjustments. Are you a saver, a splurger, a spontaneous shopper or a hoarder? Become smarter with your money and avoid impulse buying.
If you find you’re spending a lot of money in one area, such as entertainment for instance, set aside a reasonable amount each month and prepare to stop spending money in this area once your budget has been exhausted.
Budgeting provides you with the opportunity to re-evaluate your needs and wants.
If you can set your budget solidly in place before you head out home or mortgage shopping, you will be far more prepared to purchase your first home.
Following are three top tips to help you prepare for the purchase of your first home: