Even if you aren’t in the market to buy your first home today, you still need to plan ahead and make sure you are doing everything in your power to make that a possibility. Here are five ways to plan ahead so you can be a succesful first time home buyer.
1. Establish good credit habits and good credit history : Make sure you have a credit card and use it wisely. If you’re renting a place, put the lease and utility bills in your name. Take out a loan on a car, and also put that in your name. Be sure you pay these bills on time, every month.
2. Start saving for a down payment and closing costs: In some cities in the U.S. it is possible to purchase a home without alot of savings. However, in high-cost housing areas, it is to your advantage to save up for these costs. The longer you save, the longer your investment has to grow. You could open a savings account or a stock brokerage investment account , and make regular deposits into them.
3. Read some books: Check out a local library for resources on home buying and financial planning. Check online (visit our site). Take notes. Make a financial plan for yourself.
4. Research where you would like to live: Many young people assume they will live in the same city when they are older, but there is always the possibilty of moving away from your city. Use the bookstore, library or the web to research different areas around the country. Some places may have better homeownership than others and it’s good to know the various housing costs depending on where you reside.
5. Go to a real estate agent for advice: Take the advice of a realtor. We give you information about the cost of housing in various areas as well as what it takes to buy a home. Some questions you should ask are: How much money would I need to save to buy a home? Is housing affordable in this area? Are there any books you reccomend? A realtor is expert in the field and may know things that you aren’t aware of or familiar with, like the first time home buyer tax credit. Realtors and can help you with almost any questions you may have.
If I can be of assistance, please send me a note… I am happy to help you find your first home!
