Are you thinking of buying a house? Have you thought about all of the expected and unexpected costs? (Of course it won’t be the white house or anything)
I bought my first house almost 2 years ago. There were many costs that I didn’t expected, but I’m glad that I can afford them.
Tips for buying a house:
If you are paying rent now, save the difference between your future expected mortgage and what your rent payment is now (example, if your rent is $600 and your mortgage is expected to be $1,000, save $400 every month)
Understand the FULL cost of your monthly mortgage (Mortgage, home insurance, PMI, and so on)
If you buy a foreclosed house or a short sale, make sure you get the house fully inspected. I have heard horror stories where the previous owners dumped cement down the sinks and pipes
I was approved for a $250,000 house and bought a house for $130,000, I would suggest not buying a house for the full amount that you are approved on, as most lenders will approve you for way more than you can actually afford
It is also recommended that your mortgage not be more than around 30% of your monthly gross income. My mortgage is around 25% of my NET income and around 20% of my gross income
Try as hard as you can to pay down at least 20% of your house or you will have to pay PMI every month. This can be as much as $150 a month!
What tips/suggestions do you have for future homeowners?
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