How do I buy a house?

Take a look at your cash flow to see what you can invest into a home while figuring in possible closing costs, mortgage payments, interest, property tax, utilities and insurance.

Create an emergency fund.  You never know what extra expense may come up such as a roof leak or broken boiler or a busted furnace.  Rule of thumb is to save 3-6 months worth of daily expenses.  That way you have money for everything you need when something unexpected happens.

Get together a down payment and plan for surprises.  Generally, 20 percent is a standard down payment amount.  Expect surprise expenses along the way such as closing costs, maintenance, moving costs, and more.

If you are buying an older home expect up to an additional 10-20 percent of the home’s cost worth of maintenance including poor heating or insulation that needs to be replaced.

Get pre-approved!  Getting pre-approved for a mortgage for a certain dollar amount will give you a good limit for yourself when searching for a new home.

If you love the house and the neighborhood and have studied and compiled the costs, now is the time to make an offer and hope for the best!  Keep in mind, there may be times someone will beat you to the pending process.  This happens all the time.  Do not be surprised if a few homes get away from you and keep a good few top choices in mind.

“The biggest mistake millennials are making is not buying their first home.”

– David Bach



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