Six must-do’s before buying a home


Owning a home is a dream that one works to fulfill in his/her lifetime. You might be getting ready to acquire a home, but first check whether you are armed the right knowledge you need? It is easy for getting away with the excitement of home shopping and an idea that you would starting a new life in a new home, but ensure you take a moment so that you can review the basics of what goes into home buying. You should be preparing for what are the challenges you could expect, when you indeed start looking for a brand-new home!

1. Kick debt with more cash.

First of all, you should be aware know when it is a right time to buy your own home. You should ensure that you do not fall into debt trap and have some fully funded emergency funds in the bank before you plan about buying a home. Most people donot heed suggestions for such a foundation in place when they actually buy, but face trouble due to unexpected expenses or a job loss later.

2. Go for a nice down payment

Next, you should save up for atleast down payment of at least 10 %, but 20 % may be still better since it helps you in avoiding higher home loan and payments. If you are unable to afford a minimum down payment, that’s a hint that you cannot afford a home right now.

3. Keep a conservative budget!

Now once you are sure that your financial aspects are in perfect shape, this is the time for setting your home-shopping budget. Stay as much you can to be conservative and make sure that you keep your payments for no more than 25% of your take-home salary for a 15-year mortgage. Limiting your installments to 25% of your net salary implies that you would be having more money left in your budget for retirement , kids’ fees etc., even as you can clear the mortgage early. Also, factor in maintenance, roof repairs and other costs that keep coming on and off.

4. Don’t let your emotions rule.

You may be extremely diligent and intentional until this aspect. Now it may be the time to shop for home accessories and stay smart with due care and planning. This may suddenly blow off your budget in the case of your emotions taking over.

5. Patience is important.

If you are unable to get what you love in the price range, simply wait. The right home would be turning up before it is too long.

6. No autopilot mode

There are many steps like negotiations, home appraisals and inspections. Then you also have the final walk-through before closing the deal. You should be staying on your toes for each step to ensure that your home purchase goes off smoothly so that any surprises could be dealt with before you actually move in.

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