How should you approach purchasing a home? With more millennials buying a home for the first time ever, there is a ton of room for mistakes. And there is a lot on the line as well- the average price of a new home now exceeds $300k, so there are a lot of things to consider in order to make a wise purchase! At the same time, mortgage interest rates are at all-time lows. That creates a feeling like you have to move quickly before those rates start to creep back up. But if you move too quickly, you could end up overpaying for that house or not considering the bigger financial impact. We’re going to answer some questions like ‘Does renting make more sense?’, ‘What’s the purpose of this house?’, and ‘What’s your timeline?’. This episode is all about what it looks like to have a solid home buying strategy in place, so that you make a smart buy.
Additional links from this episode:
- Maybe before considering a home purchase, it’s definitely worth thinking through whether you should continue to rent, or whether it’s time to buy.
- One of the first things to do before you begin the home buying process is to make sure your credit score is in great shape. If that’s not you, listen back to our episode on rebuilding a rough credit score.
- And even before contacting lenders to get quotes, you can figure out how much of a loan you might be approved for by using a debt to income ratio calculator. Your goal should be to keep that under 30%.
During this episode we enjoyed a La Bonte with Figs by Wicked Weed! And as we’ve ramped up the podcast with an additional Friday episode every week, we could really use your help to spread the word- let friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to spread the word to get more people doing smart things with their money in these difficult times!
Best friends out!