subject: Buying Your First Home [print this page] Buying your very first home is an exciting time in your life. For many first time home buyers, the process of purchasing a new home is extremely intimidating. Suddenly, you are faced with words and phrases such as closing costs , mortgage, home owners insurance and more.
Before you set into panic mode, you can help prevent a lot of confusion and anxiety by first doing your own research. To start, know what your actual budget is. Too often, first-time home buyers focus on the price of the home and then convince themselves that they can afford the house. This is fine until things start going wrong with the home (which they inevitably will). Keep in mind that when you lived in an apartment, there was a maintenance person that you could call on who would arrive shortly after you made your request. He or she would then address the problem at no additional charge to you.
However, when you own a house, you are ultimately responsible for anything that goes wrong, and when something does happen, you cant always expect someone to show up within five or ten minutes of your phone call. But when he or she does eventually show up, the one thing that you can count on is the fact that they will more than likely be charging you a fee for something. Whether your toilet broke or your air conditioning isnt working, these are both things that you will have to keep in mind and budget for.
The last thing that you want to have happen is for you to be house poor. Being house poor simply refers to having just enough money to be able to own a house, but then once you actually start to live in the home, you dont really have many other funds for much else. Its a lose-lose situation.
This is why it is so important to figure out your budget ahead of time. Even after youve worked your own numbers, it may still be a good idea to visit your bank and speak to a financial specialist. Owning a home puts a financial burden on you, so it is wise to spend some time before hand paying down or paying off any extraneous debts that you might owe.
After youve figured out what your budget is as well as how much youve qualified for, aim to set your sites on a house that is way below budget, this way youre not in over your head.
