April 11th, 2023

The Top 5 Things To Consider Before Buying a Home

The Top 5 Things To Consider Before Buying a Home

Preparing to become a homeowner? Read on to learn the essential considerations you need to make before taking the leap. From knowing your budget to saving for a down payment, Ready Life has you covered.

Are you ready to purchase your own home? Before taking the leap, it's important to prepare for the responsibilities and financial obligations that come with homeownership. At Ready Life, we want to help simplify the process for you with these five essential considerations:

1) What’s Your Housing Budget?

The first step to homeownership is knowing your budget. Consider how much you currently pay in rent and decide if that's a comfortable monthly payment for you. Take into consideration additional monthly fees–for example, a typical monthly mortgage is likely to include property taxes and insurance. Depending on where you decide to purchase a home, there may also be Homeowners Association Fees –due annually or each month. You will want to research such costs and take them into consideration.

2) Saving for Your Down Payment

Chances are, you’ve already begun to save money if you’re expecting to buy a home in the next six months or so. The more money you put down the less your monthly mortgage amount will likely be. But how should you calculate your down payment? The old standard for a typical mortgage was 20% down, but research shows that the majority of first-time homebuyers today, put down far less –with the average down payment around seven percent (according to a National Association of Realtors survey). No matter the size of your down payment, the time to begin saving is NOW.

3) Creating an Emergency Fund

Once you own a home, expenses and home repairs will definitely arise–often as a surprise at the “worst” time. Thus, it's a good idea to begin building an "emergency home fund" now. Repairs for a home are never predictable and can be costly– especially big ticket repairs such as air conditioning, heating or plumbing repairs. Be sure to have a fund set aside so that these types of emergencies don't disrupt your lifestyle. In addition, home appliance insurance helps to offset the cost of surprise big-ticket repairs.

4) Timing of Big Purchases

Can you wait a little bit longer before purchasing a new car or sound system? It's a good idea to wait on big purchases until you have purchased your new home.

5) Location, Location, Location!

Do you know where you want your new home to be located? Begin visiting neighborhoods at different times during the week to see if it's a good fit for you, your commute and your lifestyle. Study your surroundings to be sure you are investing in a community you will be proud to call home.

Are You Ready?

In conclusion, homeownership is a big step, but with the right preparation, it can be a fulfilling and rewarding experience. Use these tips to get ready to purchase your next home and Stay Tuned for more updates and “Ready Tips” from Ready Life!

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If you haven’t already, visit www.readylife.com to learn more about our products and join the Ready Life Neighborhood.

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