Looking to pursue the American Dream by becoming a homeowner? Deciding to buy a home is one of the biggest decisions you'll make in your life, so we've put together a list of five important things to consider before you begin your home buying process.
From financial planning to determining which home features are necessities and what are just desires, these questions will help you prepare for your home buying journey.
1. Are You Ready to Buy a Home?
Before you take the big leap into homeownership, make sure you’re ready! Purchasing a home is a large financial commitment. Make sure you're in a position to commit. Consider the present and the future. Do you have a steady job you plan on keeping? Do you have a family or plan to start one in the near future? Are you ready for new financial and home maintenance responsibilities? These are just some of the questions you need to ask yourself first as you decide if homeownership is right for you.
2. Where Do You Want to Live?
Think about your future. It's important to have an idea of where you want your new home to be. If you are new to the area, you might be renting at first and will become more familiar with the surroundings over time. To have a better idea of your perfect home location, here are some things to consider:
Convenient location for your daily commute
Traffic patterns near the home
Services in that area (internet providers, garbage service, etc.)
3. What Does My Family Want and Need?
Make a list of what you NEED in a home and what you WANT in a home. Your needs should come first during your home buying process. Once you have found what you need in a new home, such as more storage or split bedrooms, you can focus on what you want. Keep in mind, your wants can be added on or upgraded later down the road.
4. How Much Home Can You Afford?
As you're preparing to purchase your dream home, look over your budget. Come up with a reasonable amount you can afford to pay each month for your home. Make sure to include your other monthly expenses like home insurance, taxes and living expenses, and plan to still have some left over for your savings.
5. How Much Do I Need to Save For a Down Payment?
The down payment needed for a home loan can vary based on purchase price and loan programs. It's a good idea to start setting some money aside each month to go toward your down payment and any closing costs. Also, make sure to check with your lender about the different financing options available and what it requires to begin your home purchase.
Now that you have an idea of some of the most important things to know before buying a home, you can decide if you're ready to embrace all the freedoms, privileges and responsibilities that come along with homeownership. Whether you are on your homebuying adventure or renting, just know that HomeFirst® Agency is always here to help you find insurance that fits your needs.