Buying your first home is a huge milestone. Since there are many items to address before you make the sale, the decision can seem daunting. Discuss your financial well-being with your bank or credit union before you start looking so that you know what price range you can afford. It’s also important to make sure the house you choose is a sound investment that won’t cost more to fix than it’s worth. Maintaining a binder with sections for various topics can keep you organized and reduce your stress.
How To Afford the House You Want
When buying their first home, most people know that it’s unrealistic to get the house of their dreams. Many first-time homebuyers don’t have enough money saved to make a large down payment. In addition to traditional loans, however, there are some loan options that require a small percentage upfront.
- VA Loans – If you are a veteran, a current service member or an eligible surviving spouse, the Department of Veterans Affairs offers attractive loan options for home buyers. For many veterans, there is no down payment required.
- FHA Loans – The Federal Housing Administration provides loans for those with a limited credit history. The down payment can be as low as 3.5% and can be paid by a family member if you qualify for the loan.
- USDA Loans – For borrowers that have a fairly low household income, loans are available for houses in certain rural areas.
If you have the patience, investing to buy a house is a smart decision. Saving money for a few years and putting it into short-term investments will enable you to increase your down payment.
How To Make Sure Your Home Isn’t a Money Pit
Even when a home inspection is conducted on your home before you sign the papers, a fixer-upper house needs many repairs. If you don’t have the experience, it’s a worthwhile investment to find a reliable local handyman who can help with renovations. If you start tearing away walls, you may compromise the entire structure of the house. Finding someone with expertise will protect your investment.
It’s tempting to tackle all of your home projects at once, but it’s best to complete one project before you begin another one. Tackling several projects makes for difficult maneuvering in the house and can add more stress to your life.
Moving into your first home is an exciting time. Planning in advance will make the transition much smoother.