Preparing Financially Before Buying a Home
Buying a home is no small decision. Frankly, it’s the biggest financial transaction many people will ever make. Therefore, it is important to make sure you are properly prepared. Armed with the right knowledge, you can start realizing your homeowner dreams.
To start, you will need to evaluate your gross monthly income, housing expenses and long-term debt. This will determine how much you can afford to spend on a home. Once you’ve taken stock of your financial situation, you can move on to other considerations, including: mortgage type, resale value of the home, tax deductions and more.
First-time homebuyers have even more to consider, such as if they qualify for first-time buyer programs through certain banks and lenders, and determining which loan is right for them.
There are dozens of questions to ask before purchasing a home, and some of the most important ones include:
- Do you have sufficient funds available for a down payment?
- Have any insurance premiums been estimated?
- Have the tax benefits of home ownership been reviewed?
- Have you gathered all of the necessary paperwork (tax returns, bank statements, etc.) for mortgage approval?
Learn more about financial planning before buying a home by downloading our comprehensive checklist. If you’re an experience homeowner, feel free to share the checklist with your children or grandchildren who may be in the housing market for the first time.
PLEASE NOTE: JNBA is not an accountant, attorney, real estate agent, nor a mortgage broker, and no portion of the mentioned checklist should be construed as legal or accounting advice. All legal and accounting advice should be addressed with the legal and accounting professionals of your choosing.