| Buying a home for the first time is a huge step | | | | can afford to pay towards mortgages. Create a |
| forward in life. Unlike buying a laptop, stereo, or car | | | | earning and expense spread sheet. Analyze your |
| buying a home is an investment towards a settled life | | | | lifestyle and determine where you can cut back and |
| and future. Although advertisements make buying a | | | | save money that can go towards a fabulous home. |
| home seem simple it is not so unless you have money | | | | Think about shopping around for more affordable car |
| saved up, have won a lottery, or inherited a huge sum | | | | and health insurance; cutting back on eating out, |
| of money. | | | | unnecessary shopping, and travel; trim everyday costs |
| When you decide to invest in a home you need to: | | | | by buying groceries at places that offer competitive |
| 1. Sit down and think what you want in a home and | | | | prices and carrying coffee and lunch from home |
| where you want to live. Decide on whether you want | | | | instead of buying lunch each day. |
| a flat, a suburban home, or a row house. Think not just | | | | 6. Create a monthly savings target and put the money |
| of the present but future needs like a growing family | | | | away in a separate account. |
| and expanding space needs. Find out about schools, | | | | 7. Make investments that are likely to provide high |
| colleges, libraries, playgrounds, doctors, hospitals and | | | | returns with low risk. Learn how to make money grow |
| grocery stores in the neighborhood. | | | | steadily. |
| 2. Nearly 80% of home searches are done today on | | | | 8. Try not to run up bills on credit or debit cards. Lock |
| the World Wide Web, you can browse through real | | | | up the cards and only use them in an emergency. |
| estate listings and view photographs of available | | | | 9. When shopping for a mortgage do a comparison of |
| homes and neighborhoods. Make a short list of | | | | different finance options; get a loan with the best |
| possible buys and then set out to view the properties | | | | possible terms. If you maintain a good credit report and |
| armed with a note book and camera. Take along a | | | | score you will reap many benefits. |
| family member or friend as two sets of eyes are | | | | 10. Surf the net and read the many articles and tips n |
| better than one. | | | | purchasing a home written by experts in finance and |
| 3. Think about a down payment, this can be between | | | | real estate. Knowledge is always a good partner in |
| 3-20% depending on the bank you are availing a home | | | | any venture. |
| loan from. Ads that indicate a 100% financing are not | | | | Buying a home must be done with care. Always |
| applicable for everyone. In general, the higher the cost | | | | choose a home that fits within your budget. This |
| of the home the larger the down payment required. | | | | decision will help you manage your finances without |
| 4. In addition to a down payment you will need funds | | | | going bankrupt. Even if loans are easily available |
| for: closing costs; insurance; taxes; home inspection | | | | remember you need to pay it back with interest so |
| and appraisal; utility deposits; advance mortgage | | | | always settle for comfort rather that choose a |
| payments; and moving expenses. | | | | prohibitively expensive property that becomes a huge |
| 5. Plan your finances and figure out what amounts you | | | | financial burden. |