Buying a home is both a major commitment and a significant long-term financial investment, so it goes without saying that the home buying process can be complex, and at times, quite exhausting. With that in mind, it's important to take your time during your home search, and always plan ahead, regardless of how long it might be before you decide to finally take that step towards home ownership.
If you're like most home buyers, you'll probably need to finance your new home or condo, which means having a pretty significant amount of money up front will almost certainly be required. Depending on your credit and financing options, you'll likely need to have anywhere from 3.5 percent to 20 percent down, and if you're using FHA financing, then you'll also need a credit score of 500 or higher; and likely closer to 10 percent down if you're in that 500 to 600 range.
Another expense you'll need cash for are closing costs, which depending on where you live, can run anywhere from $2,500 to $4,000. Of course there's almost always opportunities to find down payment assistance, especially if you're a first-time buyer, not to mention if you happen to be searching in a buyer's market, you might even be able to negotiate the seller paying a portion of the closing costs; but when it comes to buying a home, more often than not you'll need to have saved up a significant amount of money. Keeping this in mind, even if you don't plan to buy for a few years, starting to SAVE NOW will always set you up for the best chance for success when purchasing a new home, while in addition, give you many more options to consider, ensuring you'll be getting the right place, at the best possible price available.
Home Buying Secret #1: Tighten Up Your Spending 3-6 Months Prior to Buying a Home
Home Buying Secret #2: Know the Difference Between Pre-Qualified & Pre-Approved
Home Buying Secret #3: Don't Try to Time the Market
Home Buying Secret #4: Bigger Isn't Always Better
Home Buying Secret #5: Prepare For Inevitable Sleeper Costs
Home Buying Secret #6: Take Out the Emotion
Home Buying Secret #7: Inspect a Home Thoroughly Before Making an Offer
Home Buying Secret #8: Make an Informed Opening Bid with the Help of a Realtor®
Home Buying Secret #9: The First Step to Any Home Search? Devise a Checklist