Buying your first home – Are you ready?
You’ve graduated from college, settled into your career and have a little nest egg saved. Now is the time to think about taking that next big step and using what you’ve saved to buy your first home. Although you meet all the criteria to qualify for a mortgage are you really ready to take the plunge?
Buying your first home is a big commitment that requires a lot of sacrifices. Are there things you are willing to give up in order to get into home ownership? Here are few things to consider when deciding if you are ready to purchase that new home.
Think about how a new home purchase will impact your lifestyle. Do you go out to dinner and movies a lot? Do you travel? You may not be able to maintain your current way of life once you take on a mortgage. Look closely at your situation. How much do you spend on entertainment, clothes and vacations? You must be willing to make adjustments in order to accommodate a major financial commitment like a new mortgage. For example, you might need to get a subscription to Netflix instead of going out to the theatre or you might have to cook at home more often.
Small changes such as reducing your entertainment budget or buying clothes that don’t require dry cleaning may be manageable but you need to consider more major life changes and future possibilities. If you’ve never owned a home before, you will also need to take into account all of the additional costs associated with home ownership such as utility bills, home repairs, new home furnishings and household maintenance.
When purchasing a new home, you should think ahead into the future. How will carrying a mortgage affect your cash flow if you experience a major life change. Having a new baby often puts a huge financial strain on new parents due to increased expenses and income loss as one parent takes maternity/parental leave. Losing a job or getting sick will also severely impact your budget.
Other things you need to think about when buying a new home is what type and size of home to buy. Are you willing and able to spend a bit more now to get that dream house you’ve always wanted? Or should you purchase a smaller starter home so you can still do the things you love?
Purchasing a home is a major life decision. It is something you will have to live with for years to come. Whatever you decide be sure to think ahead. Think about the financial commitment and if a mortgage is something you will be able to carry on with no matter what that future holds.
Aurora, a leading financial services company, has funded billions of dollars in loans across the United States and serves clients nationwide in more than 18 states and jurisdictions. A Direct DE FHA Lender, Aurora provides a broad range of financial products and services, including consumer banking and credit, corporate and investment banking. For more information on Aurora Financial, visit www.auroraf.com or call 1-(877) 887-1117.