Planning to buy your first home? If yes, you need some serious financial planning to make it happen. If you are a first time home buyer, it is better to look out for several government resources to have clear ideas about important financial issues. Besides taking cues from those resources, it is worth deciding- are you really ready to buy a home for you, how much can you save for the down payment, how much can you afford, and how can you maintain your credit score and last of all how can you get your mortgage financing to have the ownership of your dream home?
Understand Your Affordability
When you have decided to buy a home, it is important to understand how much you can afford to pay for your new home. In order to understand this, you need to make a comprehensive financial planning so that your planning can work in your stride.
Whether you rent a home or buy a home, you need to set aside maximum amount for your house expenses such as paying your taxes, making payments for your insurance premiums and other closing costs. Think over these important issues and then decide it is worth planning to buy a home. The best way to make an effective decision about buying your home is to use a home affordability calculator. This device will help you keep aside maximum amount for unexpected repair costs, home furnishings, furniture that may go in your new home.
Make Your Decision
Decide which one is best for you- buy or rent? You may have heard that owning a home help you get substantial tax advantages. But, keep in mind that as a buyer if you fail to itemize your tax returns, you are less likely to get the benefits. On the other hand, it is seen in many cases that homeowners have to ‘break even’ after they dwell in their houses for five to six years even after taxes. Hence, it is better to itemize your tax returns. To get it done properly, you better use a buy v rent calculator.
Concentrate on Saving and Refrain from Impulse Buying
Alike many consumers, you seem to be flooded with hosts of special shopping offers by mails. You can take measures to opt out of promotional emails and yourself from impulse shopping. Your sole objective should be to save to a maximum number. For example- it is better to make 20% savings plans.
Be careful about using Credit Card Accounts
If your credit scores are excellent, always make sure to keep your credit score at best stage by paying your bills on time. However, when you are maintaining your credit score at the best possible way, it is important as well not to get lured by other credit card offerings. This is because opening new credit accounts may reduce your credit history.
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Apply for a Mortgage
Keeping credit scores good help you get mortgage loan easily. However, remember that these days credit agencies do not cancel mortgage applications of the buyers since they can easily make profits by increasing the mortgage loan rates. Therefore, it is essential to shop around for mortgage and choose the best one that gives you better offerings on rates.
If you are determined, with these financial planning ideas and some good luck you can easily buy a home.
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