To all the first time home buyers out there, listen up! If you are a lovely couple and planning a wedding, WAIT! Instead of planning a fancy wedding, perhaps instead invest in your first home.
Statistically speaking, about a quarter of homebuyers nationally are first time buyers and they fall in between the ages of around 26 to 36. Coincidentally, this is also the age that most people get married. My advice to any young couple out there, with the decision of whether or not they should spend whatever money they have saved on a wedding, versus the downpayment on a home, always pick the home. Home prices are going up and it has never been harder to buy a house than it is right now, especially for first timers. You can have a wedding at any time, and by all means get married! But if you have 20,000 to 25,000 dollars saved up and you’re going to spend it on a big party and a honeymoon or a house that will gain value over time, pick the house.
Interested in buying a home but don’t know where to start? Here are 4 simple steps to help you get started!
1.First and foremost you want to get your finances in order! If your finances are not in tip-top shape, start working on getting them now. One of the first steps a Lender will do is check your credit score and history. And no worries if you don’t have perfect credit today. Your Lender can help you create a plan to improve it before you buy!
2. Start saving for your downpayment! One of the hardest hurdles of buying a home is saving up enough money for a downpayment. Which is why we recommend first time homebuyers rethink whether or not they want to spend all their savings on their wedding day or if they want to use it as their downpayment for their first home. 😉 Your downpayment will depend on the kind of loan you decide on, but can vary anywhere from 3.5% to 20%! (Or 0% down if you’re a veteran using your VA loan)
3. Figure out what monthly payment you’re comfortable with. This step is crucial because you want to go into home buying with a clear idea of what you can and cannot afford. And no one wants to fall in love with a house that is above your price range. Know your numbers! It is recommended that you should not spend 25% to 30% of your household income on household costs, including your mortgage payment. Take some time to calculate your budget!
4. Get pre-approved for a loan! Most first time buyers typically finance their home purchase and there are a wide variety of mortgage loan products out there today. If you’re interested in getting pre-approved for a loan we can connect you with a recommended local lender! It is also important to know all of the options available to you and to determine what works best.
If you are interest in starting the home buying process (and want to elope instead of throwing a banger of a wedding so that you can afford your dream home 😉) we are here to help! We make the home buying process as smooth and fun as possible, so schedule a call with us today to get started!
