Your home is probably the most valuable asset you will ever have. Whether you own your home or have investment property, real estate is typically a good investment because property values historically increase over time. From the moment you buy a house, you are building equity in a home—equity that can be converted into cash.
Everyone dreams of buying their first home, and if you are like most people, you have been saving and fantasy shopping on Trulia, Zillow, and Realtor.com to see what the prices are like in your ideal neighborhood. You think you may have saved enough for a down payment, but how much do you really need to buy a house? The reality may be different from your expectations, especially if you are buying your first home.
There is no question that buying a new home is stressful. It’s even more stressful if you don’t understand the lingo. The world of real estate and home loans has a language all its own and you don’t want to need an interpreter when you are looking at properties or qualifying for a mortgage.
Have you always dreamed of owning a home but felt you couldn’t afford it? There are many possibilities, and owning a home is within reach! Chances are that even with your current household budget, you can put aside enough savings for a down payment on a house in one or two years, maybe even less. It’s all a matter of how you manage your money.
If you have been thinking about buying a house, it’s never too early to start saving. Most home sales require 20% of the purchase price as a down payment, or substantially less if you are a first-time homebuyer. The sooner you start saving, the sooner you will be ready to do some serious house hunting.
Is 2019 going to be the year you buy a new home? If you have been waiting for the perfect time to buy, then there is no time like the present. The housing market continues to fluctuate based on any number of factors, such as the amount of homes on the market and changes in mortgage rates. If you have been tracking the housing market, then you know how volatile it can be—and housing prices are expected to go nowhere but up, so it might be time to stop thinking about buying a home and actually take the next step.
In the past, we have written about creating a household budget and managing the family expenses. There are some costs, such as groceries and utilities, that you will incur no matter what your living situation, but if you own your home, you will have homeowner expenses that you may not have anticipated.