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5 Things to Do Before Buying a New Home
You’ve finally decided to buy a new house, but how do you actually start the process of purchasing a home? For veteran homeowners, many already know the drill. But for first-time homebuyers or those who haven't purchased a home in a while, buying a home can be a daunting process. The best way to stay calm and focused is to approach the process methodically by creating a simple checklist of things to do. 
 
1. Figure out how much you can affordThere are basically two ways to pay for a new house: either with all cash or by borrowing the money from a bank.  Should you be paying with cash, then you are only limited by the number of funds you have available. On the other hand, if the piggy bank does not allow for an all-cash purchase, then the cost of a monthly mortgage needs to be factored into your budget. According to Dave Ramsey, a good economic rule of thumb is to “[keep] your mortgage payment to no more than 25% of your monthly take-home pay on a 15-year fixed-rate mortgage. Don’t forget to save a little extra each month to cover regular maintenance as well as future home improvements and furniture replacement.”
 
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