Home Finance Budget for Your First Home with These Essential Steps

Budget for Your First Home with These Essential Steps

Budget for Your First Home with These Essential Steps
Photo by Sandy Millar on Unsplash

It is all too easy to end up in debt or facing foreclosure if you do not take the proper precautions with your first home. It can also be hard to know where to look for support and know which expenses can be spared and unavoidable. Here are a few tips to help you plan your budget and cut costs.  

Map Out Your Future Financial Landscape

Make a list of all your bills, ongoing debts, and any other repayments. Think about potential costs that you could face which would tank your budget. Are you planning on raising a family in your new home? What is the likelihood of ongoing medical bills? Start working on building a financial cushion that will keep the loan repayments separate. 

Know What Your Must-Haves Are

Create a list of the essentials for your new home, from the number of bedrooms to the location. Because the housing market is so competitive for buyers right now, you may find yourself being talked into taking a house that does not suit your needs. If you can’t compromise on separate bedrooms for your kids, a home office, or being close enough to work and school, be firm on that. 

Check If You Are Eligible For Home Loan Support

Find out if you can apply for financial support before you agree to a mortgage. For example, veterans of the US military may be eligible for a VA home loan depending on their service record. They would not need to make a down payment on the loan and have more favorable interest rates. There are other benefits provided to veterans looking for a house buying support, including adapted housing grants to help veterans adapt or buy an accessible home and the Native American Direct Loan Program. Another example is people with low to middle income who have low credit scores may also be eligible for USDA loans.

Do A Thorough Property Survey

SURVEY - Budget for Your First Home with These Essential Steps
Image by Aavaaz home builder, via Wikimedia Commons

Commission an independent survey of the property you want to buy. The most common regret among millennials who have bought homes is underestimating the costs involved. Making expensive repairs or replacements is one of the biggest expenses you might have to face. Check everything from the electrical wiring to the plumbing before you sign on the dotted line. 

Do Not Forget About Insurance

Account for monthly insurance costs when you are creating your budget. In the event of an accident or a burglary, you could stand to lose far more without it. Make a detailed inventory of everything you have in your home and shop around to find the best rates. Previous claims made may impact your insurance premiums, but you should also know that any false information on your application could result in a payment being denied. 

Featured Photo by Sandy Millar on Unsplash

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