What do you need to know when buying your first home?
Buying your first home can be daunting but it's also one of the most exciting steps you take throughout your life. You get to decide where you live, what your home looks like, what features your home has and so much more!
So, what are ALL the things that you need to know when buying your first home?
It might seem overwhelming knowing where to start because there are SO many factors that go into finding the perfect home for you. Here are some helpful tips to guide you on your journey to homeownership.
How much house can you afford?
First, it's important to evaluate your financial situation and determine how much you can afford to spend on a house. How much is feasible for you to put down? How much is feasible for you to pay monthly for your mortgage?
The 30 percent rule
As a general rule, most people should plan to spend about 30% of their gross income on housing. According to the national foundation of credit counseling, this is 30% of your income set aside for housing, including things like HOA fees, mortgage payments, and utilities.
Location, location, location
Once you’ve determined what you can afford, start thinking about location. Do you like the hustle and bustle of being in the heart of a city? Do you like the peace and quiet of the suburbs? Do you want to live in a place where you can see wildlife from your windows? What is your ideal climate? What is the distance between your potential new home and your workplace? Is the commute okay for your lifestyle? How close is your potential new home to things like fire stations, police stations, hospitals, schools, and grocery stores?
Having trouble determining what location would be best for you? Check out this article from Orchard.
How much space to you need?
After you’ve narrowed down what location you are looking for, it’s time to think about space. Determine how many bedrooms you need. If you have children would they share bedrooms or would they each get their own? Do you want to have a spare bedroom for guests? Do you need an office space?
Think about whether or not you plan to entertain at the home and what size gatherings you might have there. Think about the cooking you do on a day-to-day basis. Would you need a larger, open concept kitchen for entertaining guests? Would you prefer a smaller, cozy kitchen that is separate from the living and dining spaces? If you have pets think about what sort of outdoor space they might need. What sort of parking suits your needs best? Think about your needs based on your lifestyle.
Start exploring
Finally, once you’ve evaluated what you can afford, what locations you’d like to search, and what your needs are based on your lifestyle, it’s time for the fun part. What do you like? What exteriors or styles do you find aesthetically pleasing? What are features that you’d like to see both interior and exterior? What home improvement projects would you be willing to do if the house doesn’t have something that you really want it to have? What would the budget for that project be? The fun part is spending time "Zillow scrolling" to explore all the options.
House hunting is a very loaded task, but CAFCU is here to help you through it. With our spectacular real estate department and our incredible deals on home loans, finding your new home can be more exciting and enjoyable than it might have been before.
Talk to an expert
If you are unsure about how much you can afford to spend on a home, schedule a FREE 1:1 financial coaching session with one of our in-house certified credit union financial counselors. Click [ here ] to learn more.
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] to learn more about CAFCU’s mortgage discounts!