Buying your first home can be a fun and exciting time but it can also be a time of uncertainty and fear of the unknown. Fear not, we are here to help you best understand the process and remove the fear and anxiety of the home buying experience.
The home buying adventure starts like any good story, with the decision to start. Somewhere between graduation, your current lease expiring, or being sick of living in your current housing situation, you might decide to purchase a home of your own. Buying a home is a big commitment and the decision should not be taken lightly, there are several key factors you should consider before buying your first home.
It’s impossible to think about buying a house without talking about numbers, personally, I think you should bite the bullet and look at the numbers right from the get go. Depending on your situation how you look at the numbers will vary. For instance if you are living rent free in a family member’s basement, it’s going to be hard to find a house that is cheaper than that. In general we recommend looking at what you can afford on a monthly basis and working the numbers backwards from there. If you look online typically you will see a few different views or variations on what you should pay each month, you’ll typically see ranges from 25% to 28% of your total monthly take home. So if you take home $1000 a month you could spend $250-280 (1000*.25 and 1000* .28) a month on your monthly mortgage payment. We typically recommend you stay conservative, especially on your first home purchase, always look to buy a house you can afford now, not one you will be able to afford later.
Length of Transaction
The typical real estate transaction can take 30-45 days, but can be extended if you or the sellers need to. This can be valuable information if you need to time PTO from work, the ending of a lease or if you need to schedule friends to help you move.