Before you even consider buying a home, make sure your financial house is in order. Real estate experts recommend first, make sure your job is stable, stick to a budget and spend less than you earn.
Says author David Greene, “If you’re in that situation you should be very motivated to buy a home because rents are going to keep going up.”
The next thing you should do is to talk to a lender. They’ll tell you whether you’re able to take out a loan on that house, then, make sure you’re comfortable making a mortgage payment.
“For some people, it’s not worth eating-in every single day or driving a Civic instead of a Mercedes,” according to Greene. “They’d rather rent a house and be able to have some of those things. If you’re going to be a homeowner you reasonably need to expect it. You may need to make some balances and some number crunching in your budget so you can afford it.”
And last, but not least, make sure you save enough money for a down payment. So, if you’re ready to get off the fence and into the housing market, go for it! Experts say it’s a wise investment in your finances and your future.
Greene says, “Once you get this bug and decide I really want to own a home. I really want to buy an investment property. We start looking deeper in our finances. We start making cutbacks in things we don’t need to help us strive towards the goal that’s a worthy one.”