Things To Consider When Buying A Home


The American dream… go to school, get a good career, start a lovely family and don’t forget the white picket fence house.

Home ownership, a desirable goal but with little education around it. A few things to consider when purchasing your home are your budget, saving and maintenance cost.

This may sound obvious but saving is the number one thing you should do before purchasing a home. Avoid the no money down options if possible. It may sound enticing, but the borrowing costs are much higher. The social pressure of home ownership is real, FOMO, but saving the 20% for your down payment is your first step. Second, build up that emergency fund before buying. Putting aside 6 months of your mortgage fees may sound silly, but it acts as a great buffer if something unexpected were to happen.

Bigger isn’t always better. Today we want the best and the biggest. Often times at the expense of impressing people who really don’t care. Playing this same game with a house is no fun. If it isn’t in the budget, don’t do it. Maintenance cost in a smaller home may be less because the square footage isn’t as large.

The 25% rule is often ignored when purchasing a home. Again home ownership is a wonderful, but you must be wise and not left house poor where the majority of your income is going towards the upkeep of your home. No more than 25% of your take home pay should be going towards your mortgage payments. Keeping a buffer is great too for those unexpected expense. Property tax and other fees are also good to factor into the 25%.

Take the necessary time required to fully plan the purchase of buying the home. Run the numbers and don’t feel pressured.

Vanessa SmithComment