Making the decision to buy a new home can be an exhilarating experience – and a financially terrifying one, too. If the number of zeros after your approved mortgage amount makes you just a little bit dizzy, check out these money-saving tips for new home buyers to keep your finances in check as you search for the home of your dreams.
A Realistic Budget. Go through your monthly budget with a fine-toothed comb. What are your recurring expenses? What items are flexible (e.g. groceries or entertainment)? Do you have any non-monthly charges, such as annual credit card fees, membership dues, or quarterly payments? Put your monthly income in one column, your monthly expenses in another (without rent, of course), and the difference is what you can actually afford for a mortgage payment.
Never Go It Alone. Buying a house is likely to be one of the single most complicated undertakings you’ll ever experience — so get all the help you can! Real estate agencies and real estate agents exist to help people buy homes. They know the process, forward and backward, and can guide you through it every step of the way. They’ll help make sure every t is crossed and every i is dotted, so there are no surprises. And they can make sure you take advantage of…
First Time Home Buyer Incentives. The more people own homes, the more stable the economy is. So the Federal Housing Administration (FHA) has put into place several first time home buyer incentives to facilitate and encourage ownership — programs such as Good Neighbor Next Door, first time owner credits, and FHA-insured loans, just to name a few. Your real estate agent can tell you which ones you qualify for.
Buying your first home should be a rewarding and satisfying process, despite its complication. Budget wisely, get the help you need, and save money where you can, and you’ll be enjoying your new home before you know it. Find more on this topic here.