There is so much to think about when buying your first home as newlyweds—from how much you can afford, to what type of property and where. But it can become a reality if you set yourselves some realistic goals. Here are some questions to consider when deciding if you should buy your first home.
How much do you have?
Owning your own place comes with a number of new expenses, so good money management skills are a must have. If you don’t have a budget right now, then start one. You need to know where you are financially—where your money is coming from and where it goes every month. Sit down together and look at exactly how much you have coming in, and exactly how much is going out. Only then should you decide how much you can afford to set aside for mortgage repayments.
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How much do you owe?
Once you have your budget worked out you will be able to see exactly how much you can afford on loan repayments each month. Ask yourself important questions like:
- Can you make the loan repayments?
- Will you still have enough money for other bills and necessities?
- Will you still be able to pay off your other debts?
Also, consider that your bills may change if you move to a new area, or if you go from living with others to living on your own. If either of you have personal loans or credit cards to pay off, ensure you get control of those before even considering putting an offer on a house.
How much are you entitled to?
Home loan lenders will require an initial deposit, so do some research as to how much you will need to save prior to getting the loan. Generally, the deposit is at least 5%. It could be even less if you qualify for an FHA or VA home loan.
A lender will let you know the maximum amount you qualify for a home loan. This will vary from different lenders, so do some research. You both will need to be comfortable with your mortgage payment so having an agreed upon budget ahead of time will help. There are a number of loans you can choose from, so search the internet and educate yourself on the different loan options.
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Plan and Research
There is a lot to think about when buying your first home so research and planning are crucial. Sit down and really think about what you both want:
- Where do you want to buy?
- What type of house do you want? A condo? A home with land?
- Do you plan on having children? Make sure you consider the school district.
Buying your first home is an exciting process, but not one to rush into. Make the most of the information you gather. Do the essential ground work, and in no time, you’ll be on the way to owning your very own first home as a couple.
So, are you ready to buy your first home? If you already purchased a home, what advice can you give?
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