By Joseph Palumbo III
Now is the time to buy a home for first−time buyers. Many will say renting is the equivalent of throwing money out the window. But with anything you do, you must have a plan. Let’s talk about five steps to finding out if owning a home is right for you.
Step 1: Realistically know what your income is and do not agree to spend more than one−third of the total on housing−related costs.
Step 2: Agree on a number you can afford for a house and then wait until you have 20 percent to put down on it. It sounds “old school,” but it works in the long run. Plus, in these trying times, having 20 percent to put down will put you in a stronger bargaining position when house hunting and benefit you overall financially.
Step 3: Do not buy a home in an area you know is above your price range or financially trying. Just because your friends or family live in a certain area does not mean that is the best fit for you.
Step 4: Think long term with the house you are purchasing. Buying a home takes a big bite out of your finances and owning one can turn into a bottomless pit by spending your money. Take advantage of lower prices and buy the home you will probably retire in.
Step 5: Do not be afraid to talk about money and be honest about your financial situation. Sit down with your spouse and talk about what you make and what you can both afford now and in the future. One huge question that gets overlooked is what happens when we have kids?
So How’s Business regarding the steps in purchasing a home? Many ask me if I think the housing market has bottomed out. I think we are circling the runway and close to landing, but have not touched down yet. First−time home buyers are in a prime position, but should not be overanxious, regulate spending habits and protect their credit.
Reach Joe Palumbo at 516−248−0256 or info@camelotlimo.com.
