Tired of renting? Living in a basement? Need more space? The process of buying your first home can be overwhelming. Here are some steps to consider to turn your dream into reality.
– Review your budget (yes, you need one!) Do you make enough monthly income to qualify for a mortgage and pay for the mortgage payment, taxes, condo fees (if there are any), utilities and regular maintenance? You can count on needing at least $1500 a month. Check this website out for great budgeting ideas:
– Start saving for your down payment. For a $200,000 condo, you can expect to need a minimum of $10,000 down.
– Then save some more! Establish your priorities. That might mean putting off things like the new car or expensive vacation for a while.
– Establish good credit. Pay off debts like your credit card regularly.
– Talk to your bank or a mortgage broker. They can help you find out what you qualify for. If you don’t qualify yet, they can help you make a plan.
– Go online and check what’s available and for what price. Be realistic about your expectations. House, duplex or condo? New or old? Remember, it’s a process, you probably won’t be starting out in your dream house!
With a bit of planning, your first home doesn’t need to look like this!
STEP 2: Borrowing Money