4 Must-Dos before buying a home

Home Buying Season: if it isn’t in swing already, it will soon be, in the months immediately after New Year’s. Don’t get carried away with the excitement of buying a new home and the idea of living in it. Take a moment to review all your options and the ABCs of home buying beforehand. It’s always better that you learn of these basics before ringing bells and knocking on doors of for-sale houses.

The right time to consider buying

It has less to do with the discovery of a good deal or yearly calendar and has everything to do with your financial stability.  If you are out of debt and have a fully funded emergency account in the bank, any time is a good time for you to invest in a house.

Decent down payments

If you believe you will be able to save up to at least 10% or 20% on the private mortgage insurance down payments, you can probably afford a new home.

Go for a budget conservative approach

If you think you have all your financial ducks in a row for now, don’t go overboard with spending. Set a home shopping budget that doesn’t exceed 25% of your take-home pay on a 15-year mortgage. This will ensure that you have enough savings for post-retirement and your children’s college fees. Not to mention the extra costs you have to spend on home repairs and maintenance.

Don’t get overwhelmed with emotions

Stay smart when it’s time to shop for homes. Don’t let your emotions take a toll on your anticipated budget just because you fell in love with a house or neighborhood. If you are unable to find a decent home in your range, it’s better to wait until the right home turns up.

Buying the right home at the right time requires a lot of patience and preparation. The only reward out of this is a home that is a blessing and not a curse, which is the whole point.

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