You\u2019ve been hearing it all your life: Buying your first home is a big deal. <\/p>\n\n\n\n
It\u2019s true that the homebuying process can be unfamiliar and overwhelming\u2014especially for first-time buyers\u2014but it doesn\u2019t have to be unpleasant. Before you get too attached to the idea of homeownership, have an honest conversation with yourself\u2014and your partner if you\u2019re purchasing the home with someone else\u2014by reading through the following 12 statements.<\/strong><\/p>\n\n\n\n If you can answer \u201ctrue\u201d to all or most, then congratulations! You\u2019re probably ready! If you find yourself answering \u201cfalse,\u201d however, you may have more work to do. Read on to learn more about how to better prepare for the task ahead.<\/p>\n\n\n\n \u201cHow do I know I\u2019m ready to buy a house?\u201d It\u2019s a question that pops into every potential homeowner\u2019s mind eventually. <\/p>\n\n\n\n A lot of blogs will tell you that money and financial health<\/strong><\/a> are the most important piece of the homebuying puzzle\u2014and it\u2019s true that both are important\u2014but the question many first-timers fail to consider before beginning their journey is, \u201cWhy?\u201d<\/p>\n\n\n\n Before you think any further about whether or not you\u2019re ready to buy a house, ask yourself, \u201cWhy do I want to buy a house right now?\u201d<\/p>\n\n\n\n Is your family growing and you need more space? Have you found a home in a neighborhood you\u2019ve loved for years and want to invest in your future there? Have you worked hard to save up enough money to make a down payment? Have you figured out that your monthly mortgage payments will cost less than your current rent?<\/p>\n\n\n\n Whatever your reason, write it down. If it\u2019s the neighborhood, write down what you love about it. If your family is growing, write down some of the things you\u2019ll be able to do with a space that better suits your needs. <\/p>\n\n\n\n When things start to feel stressful or shakey, think back to this list. Remind yourself why<\/em> you\u2019re tackling the paperwork, why<\/em> you\u2019re learning about all the different kinds of mortgage options. Having confidence in your reason will help you have confidence as you make your way through the process, too.<\/p>\n\n\n\n No one should ever entertain the possibility of a large, long-time financial commitment such as buying a home without first taking a close look at their budget. If you haven\u2019t done the math to ensure that a) you can afford to buy a home you\u2019d be happy with and b) buying a home is financially sound, stop right now. Back up. You have some homework to do!<\/p>\n\n\n\n Conducting a financial checkup<\/strong><\/a> is actually quite easy so long as you\u2019re prepared. There are 10 different parts of your finances to consider: <\/p>\n\n\n\n Flyhomes even has a free printable checklist<\/strong><\/a> to make organizing each part super easy. Once you have all your materials gathered, you can use a simple spreadsheet application like Excel or Google Sheets to sort out your budget.<\/p>\n\n\n\n Not only will this give you personal peace of mind, but much of this information will be needed further down the road. When applying for a mortgage loan, for example, you\u2019ll need those tax returns and bank statements, and thanks to this step you\u2019ll already have dug them up. Way to go!<\/p>\n\n\n\n Coming up with a down payment can feel like solving a riddle for first-time homebuyers.<\/p>\n\n\n\n \u201cHow much money do I need to put down?\u201d \u201cHow do I know my down payment is enough?\u201d \u201cWhat do I do if I don\u2019t have enough money for a large down payment?\u201d These are the anxiety-inducing questions that have spun through potential homebuyers\u2019 brains like a hamster on a wheel. <\/p>\n\n\n\n It\u2019s long been believed that a sufficient down payment is at least 20% of the price of the home, and that\u2019s a huge chunk of change, especially for a first-time buyer. The good news is the 20% down payment is a myth<\/strong><\/a>.<\/strong><\/p>\n\n\n\n According to the <\/strong>2021 National Association of REALTORS Home Buyers and Sellers Generational Trends Report<\/strong><\/a>, the current median down payment in the U.S. is just 12%.<\/p>\n\n\n\n There are pros and cons to both a high down payment and a low down payment, many of which are spelled out in more detail here<\/strong><\/a>. Don\u2019t panic if your savings account isn\u2019t bursting at the seams. Read up on your options and find a number that works for you.<\/p>\n\n\n\n You\u2019ve done the math, you\u2019ve read up on your different mortgage options<\/strong><\/a>, you\u2019ve learned what you need to do to make a strong offer on a home<\/strong><\/a> and you are, in fact, ready to buy a home. Maybe you\u2019ve even attended a few open houses and saved some favorite listings. That\u2019s the fun part! <\/p>\n\n\n\n But\u2014there\u2019s always a but\u2014have you thought about what comes after you make an offer<\/strong><\/a>? Do you know what happens during the closing process<\/strong><\/a>? Are you aware of some of the common hurdles such as a low appraisal, a bidding war, or a listing agent who goes MIA?<\/p>\n\n\n\n Think of it this way: You wouldn\u2019t jump into the ocean without first taking a few swimming lessons in a pool, right? Get familiar with the process, from beginning to end, even if the finish line feels hopelessly far away at this point. The good news is, you\u2019ve already gotten a good start\u2014you\u2019re here, you\u2019re learning. You can do this.<\/p>\n\n\n\n If you\u2019re looking to buy in your current neighborhood, chances are you already know it\u2019s a good fit for long-term living. The neighborhood, and how much you enjoy your time there, might even be one of your reasons for wanting to stay. (Don\u2019t forget to add that to your why as mentioned above!)<\/p>\n\n\n\n However, if you\u2019re buying a home for other reasons, and still aren\u2019t sure where<\/em> to live, the search can start to feel a lot like looking for a needle in a haystack.<\/p>\n\n\n\n Break it down into bite-sized chunks. Start by dedicating one day each weekend to exploring one different neighborhood in your desired area. Check out local shops, restaurants, and parks, and get a feel for how close residential areas are to schools, grocery stores, bus lines, and other services you may use on a day-to-day basis.<\/p>\n\n\n\n Pop into a few open houses, too. It\u2019s never too early to look<\/strong><\/a> and the host should be able to answer any questions you have about the area. Doing this will give you a better idea of whether or not you\u2019d be able to find something within your budget in a given neighborhood.<\/p>\n\n\n\n As Flyhomes states in this <\/strong>list of homebuying tips for first-time buyers<\/strong><\/a>, \u201cyou can make improvements to a home, but you can\u2019t change the neighborhood!\u201d <\/p>\n\n\n\n Get even more tips on how to love where you live here<\/strong>.<\/a><\/p>\n\n\n\n There\u2019s no way around it: buying a home is a commitment, and whether or not that commitment fits into your current lifestyle isn\u2019t just a matter of being able to afford it. You also want to make sure homeownership doesn\u2019t interfere with your day-to-day life.<\/p>\n\n\n\n Do you really want to buy a great home if you have to drive an extra two hours each day to get there? How enjoyable will that new condo be if you have to constantly work overtime to afford it?<\/p>\n\n\n\n Think about your routine, commute,how you like to spend your free time, and what you\u2019re willing to give up. Can you afford a home that will still allow you those pleasures? Will taking the leap now improve your life? Or are you rushing into this decision for some other reason, like wanting to take advantage of what you perceive to be a buyers\u2019 market? <\/p>\n\n\n\n Don\u2019t let the market\u2014or any other outside source for that matter\u2014make this decision for you. Trust your gut. If now doesn\u2019t feel like the right time you may be better off waiting a bit longer.<\/p>\n\n\n\n OK, so you feel confident that owning a home fits your lifestyle now<\/em>. Have you thought about where you\u2019ll be in the next five years? What might change in your life? And how would those changes impact where and how you live? <\/p>\n\n\n\n Life is unpredictable and, of course, you don\u2019t know what\u2019s going to happen tomorrow let alone in five years. Still, ask yourself where you want <\/em>to be in five years. <\/p>\n\n\n\n Maybe you\u2019ve always loved the idea of living aboard for a year or two. Maybe you\u2019ve long dreamed about going back to school. Maybe your family will grow. <\/p>\n\n\n\n Does buying a home today fit into your hopes for tomorrow?<\/p>\n\n\n\n Appliances break. Faucets drip. Roofs leak. You won\u2019t have to fix all of those issues yourself, necessarily, but you will have to hire someone who can, and any long-time homeowner will tell you that finding a trustworthy repair person and ensuring the work gets done in a timely, affordable manner can be quite the task.<\/p>\n\n\n\n Keeping an emergency fund in your budget is a good way to be prepared for unexpected issues such as these, and you can also look into different types of insurance that will protect you and your home from certain issues such as fire damage, flooding, and more.<\/p>\n\n\n\n Still, if you find you\u2019d rather have your landlord deal with the big stuff, maybe put off homebuying a little longer.<\/p>\n\n\n\n Having your budget sorted down to the dollar may feel like an accomplishment, but unless you also have some wiggle room worked into those numbers, your whole system could shatter to bits with just one surprise cost and homebuying can come with some surprises.<\/p>\n\n\n\n When purchasing a home, you\u2019re not just buying the home itself. It\u2019s possible you\u2019ll also have to pay for a home inspection, closing costs, taxes, insurance, and utilities, which could include everything from water, gas, and electricity to trash and recycling. <\/p>\n\n\n\n Beyond the period of time surrounding your actual home purchase, homes just have things that can break and cost money to fix (see aforementioned leaky faucet). <\/p>\n\n\n\n Have a contingency plan in place for when the unexpected happens. Added costs will only result in added stress.<\/p>\n\n\n\n You do not have to make this big life decision alone. <\/p>\n\n\n\n Just as you shouldn\u2019t be afraid to ask your broker or real estate agent questions<\/strong><\/a>\u2014that\u2019s what they\u2019re there for!\u2014you also shouldn\u2019t pass on the opportunity to benefit from people in your life who\u2019ve successfully made their way through the homebuying maze. <\/p>\n\n\n\n Friends, family, coworkers, and even pals you interact with on social media can provide an abundance of knowledge. The offer to buy someone a cocktail or a cup of coffee can go a long way when looking to pick their brain for tips and advice.<\/p>\n\n\n\n While you chat, ask them if they\u2019d be willing to help out should you hit any bumps along the way, too\u2014 you\u2019ll feel better knowing you have someone you can trust just a phone call away, and chances are they\u2019ll be happy to put their hard-earned lessons to good use.<\/p>\n\n\n\n Whether you\u2019re renting or buying, moving can be a stressful whirlwind with a to-do list that seems to get longer by the minute. Now, while your brain is still fresh, make a list of all the tasks that will come after closing and file it away for later. <\/p>\n\n\n\n You\u2019ll need home insurance, for starters, but you may also want to consider additional coverage for earthquakes, fire, and\/or flooding, depending on where you live.<\/p>\n\n\n\n You\u2019ll have to get the home set up with any community services\u2014garbage, compost, recycling\u2014and technical services such as internet and cable. Now\u2019s the time to think about what seasonal and annual inspections or services the home may need, too, from termites and lawncare to chimney sweeping and HVAC maintenance.<\/p>\n\n\n\nWhat you\u2019ll learn<\/h2>\n\n\n\n
Are you ready to buy your first house? See if you can answer \u201ctrue\u201d to the following statements.<\/h2>\n\n\n\n
1. You know your why.<\/h2>\n\n\n\n
2. You\u2019ve done the math.<\/h2>\n\n\n\n
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3. You have the money for a down payment.<\/h2>\n\n\n\n
4. You have familiarized yourself with the homebuying process from start to finish.<\/h2>\n\n\n\n
5. You have familiarized yourself with the neighborhood.<\/h2>\n\n\n\n
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6. Owning a home fits your current lifestyle.<\/h2>\n\n\n\n
7. Owning a home fits your five-year plan.<\/h2>\n\n\n\n
8. You can fix a leaky faucet.<\/h2>\n\n\n\n
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<\/figure>\n\n\n\n9. You\u2019re prepared for unexpected costs.<\/h2>\n\n\n\n
10. You have established a solid support system.<\/h2>\n\n\n\n
11. You\u2019ve thought about what comes next.<\/h2>\n\n\n\n
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