Home is where the heart is.
1. Start building your credit right away.
If you haven’t started building your credit that is something I highly suggest putting at the top of your list. When purchasing a home, almost every loaner that you come across will want to know what your credit score is, and how long you have had it. If you don’t know where to start, I would suggest going to your bank and starting with a small student credit card. My first credit card had a $200 limit on it, and I used it on small things like gas and out to eat places.
2. Make sure you are smart with your credit.
I made the mistake of going credit crazy, and now I am having to pay of $3000 worth of debt. Do not make the mistake I made. I only recommend using one credit card like the one I mentioned above, and only use it for one small thing, and as soon as it’s time to pay your monthly payment pay off 90% of what you used. That way you will be building your credit, but not allowing yourself into a massive hole of debt. Just an FYI it’s not free money guys.
3. Start putting money back for a down payment.
Look up money saving plans on Pinterest. Figure out what would work best with your budget, and if it means cutting out unnecessary costs then do it. Most sellers require a minimum of $3000 to $5000 down. Just keep the bigger picture in mind, and you could be a homeowner in a year or two!
4. Keep in mind the location.
For future reference think about the future. Is this an area that you want to raise a family in? Is it safe, and what kind of schools are around. This is just something to take into consideration. Especially if you are planning on buying a home with your future spouse.
5. Consider renting before buying.
I know renting may seem like you’re wasting your money, but consider these things.
- Can you really afford buying a home just yet? This includes house payments, home owners insurance, water, electricity. When living in an apartment most of the time the only thing you have to pay for is rent and electricity.
- Do you have the furniture and appliances you need for your home? If you wait and rent before buying, then you will have more time to save to buy furniture and appliances, because most apartments come with the appliances. The only appliances we had to pay for where the washer and dryer, and our microwave.
Although it is frustrating to live in an apartment sometimes, these are just some things you need to consider.
I hope these suggestions have helped you. This is something that I wish someone would have shared with me, because it would have helped me to make smarter decisions sooner rather than later, but hopefully I can help someone from making the same mistakes that I did just because I didn’t have the knowledge or understanding of everything that goes into buying a home.
“Life takes us to unexpected places, and love takes us home.”