No matter where you are, buying a house isn’t cheap. You’re looking at a six-figure expense when it’s all said and done, if not more.
So how do you prepare your budget? Forbes’ Real Estate Council shares three tips:
1. Evaluate Current Housing Budget
First-time home buyers should evaluate their current housing budget, their comfort level with it, and how that budget impacts their other life desires and needs, such as travel or starting a family. If the rental budget is comfortable, then it is likely a comfortable budget for a mortgage, factoring in all expenses including a budget for repair savings. — Michelle Ames, HorsePower Team Texas/Independent Realty
2. Be Realistic
Take the time to research homes online to see what’s out there. Make a list of your “must have” features, and narrow down what neighborhoods you prefer. Be realistic. It’s good to set expectations and know what you want, but you also don’t want to be unrealistic with your expectations. There’s no such thing as a perfect home and you might have to compromise. — Will Featherstone, Featherstone & Co.
3. Document Your Spending
The first step needs to be to document spending habits. One young couple came to me because they felt they were unable to buy a home. We discovered some spending habits that were keeping them in debt. After implementing some changes, they came back six months later with less debt and spending, and they were ultimately able to buy a home. — Aaron Zapata, IMPACT Properties California
Read more of Forbes’ tips here.