Most first time home buyers know that the process to purchasing their first homes start with talking to a mortgage lender, and then choosing a buyers agent. However, I feel that the most important part of the process isn't often talked about: Creating a budget that is comfortable.
One of the things that I suggest to my local Macomb County MI 1st time home buyers is to sit down with a notebook and write down the expenses that they feel they will have in a new home that they don't have now:
Higher utility bills. (If you are in an apartment plan on paying double what you currently
pay for utilities.)
Maintenance costs. (Budget a monthly amount for routine maintenance on a home)
Higher gasoline prices. (Most home buyers purchase further away from their places
of employment than they live while renting. The higher gasoline prices can wreak havoc
if you haven't budgeted for it.)
Once you're comfortable with your projected budget you can begin to live with that budget before you purchase a home. Try that budget on for size so to speak for a few months to see if it really is comfortable for you. Take that added money and put it away and pretend it isn't there. (It won't be when you've purchased the home and moved in to it!)
Along with the knowledge that "I can do this!" you'll also have more money tucked away to use towards the purchase of your new home if you've tried out your budget for a few months.
Try on those bigger shoes to see if they'll fit!
Kris Wales - A Macomb County MI real estate agent
Photo courtesy of:
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What great advice - something they might not think of on their own right away. Also love the new pic! :-)