Get Coined Up
Don’t Skimp on the Down Payment
Putting down a large sum may weigh heavy on the pockets, but in the long run, you will benefit greatly. You should pay at least 20 percent of the home’s purchase price. So even if the value of your home depreciates, you can still sell your humble abode in the future. “The less you put down, the greater the probability of being underwater (owing more than the value of the house) at some point,” said Eleanor Blayney, a consumer advocate for the Certified Financial Planner Board of Standards.
Build Nest Egg First, Get Bungalow Later
Before you get all gung-ho about purchasing a home, you need to consider the fate of your financial future. Ask yourself these questions: Are you contributing to a secure retirement plan? In the event of an emergency, do you have sufficient cash for six-months worth of expenses? Do you have disability insurance? The answers to these question must be affirmative, especially if you’re unmarried, if you want to escape the financial hassles many homeowners face.
Knowledge is Power
Find you a financial adviser! First-time homeowners are especially vulnerable to being hoodwinked by sketchy realtors, mortgage brokers, and bank practices. Don’t let your lack of knowledge in real estate be your ultimate downfall as a homeowner. Grab some books to learn about home improvement and repairs. It’ll be great to save you some cash instead of shelling out your life savings to the handyman. Once you’re a home improvement expert, who could ever take advantage of you?