Buying your first home can be a wonderful event. Like all good things in life, it takes proper planning and budgeting. National talk show host Dave Ramsey shares some useful tips with us.
FREE Guide that explains how to prepare and qualify for purchasing your first home. CLICK HERE
1. Pay Off All Debt and Build an Emergency Fund
Owning a home is expensive—much more expensive than renting, even if your monthly house payment will be similar or cheaper than your current rent amount. That’s because when you own a home, you’re responsible for all the maintenance and upkeep costs. And those can add up fast! So, before you even think about buying your first home, make sure you’re debt-free and have an emergency fund of three to six months of expenses in place.
When you get into a home with no payments (besides the mortgage) and have a nice big emergency fund READ MORE HERE
2. Determine How Much House You Can Afford
Before you get emotionally attached to a beautiful house, check your monthly budget to determine how much house you can afford. You need to leave room in your budget for other things, so make sure your monthly housing costs (including HOA fees, taxes, insurance, etc.) are going to be no more than 25% of your monthly take-home pay. READ MORE HERE
