home buying tips and tricks
When you buy a house, you don’t buy it thinking you will have to move out or not be able to afford it. So many people are house poor due to the banks financing more than they could afford. Here are some home buying tips and tricks to consider when purchasing a home, so you can keep it when financial situations change.
We have built a home within our means and sold it. We have also purchased a bigger home for less, that required work so we could save money and travel.
home buying tips first time buyer – don’t be house poor
Pick your payment. When we went to build our home, we got the loan and they said you are approved for thi$$$ much. I about choked. It was way more than we wanted to spend. And since my hubby hadn’t bought a house before, he was very uncomfortable. We said that was fine, but this is what we want our payment to be (about 1/2 to 2/3 of what they came back with). We did this so that should one of us die or lose our job, we could still afford the payment. Our second home we bought with the intent to be able to make payments on one income should one of us lose our job.
Fixer Upper. Find a home that needs repairs that you are comfortable to do (and can live in while working on it). Don’t take on more than you can do and only fix the major things, live with the non-essential fixes until you can afford to complete them.
Not a Gutter. Don’t pick a home that needs to be completely gutted, unless it’s at an extremely cheap price, or you will be living with studded walls when unexpected expenses come up.
One room at a time. If you decide to remodel, only do one room at a time. You could run into several problems while remodeling. If you have your entire home tore up, your might have to divert your funds to the unexpected repairs causing you to live in a half done home longer than expected.
DIY Smart. There are lot of You Tube videos and books to help you get through minor repairs (and some major repairs), but know your limits. Don’t do repairs thinking you can, only to end up having to hire someone to fix your much bigger problem than when you started.
Location, Location. Make sure you are buying a home in a location that is convenient to your work. With the cost of gas, it may be smarter to buy a home closer to your work. Keep in mind how far away your support system is for your family for child care and if you are comfortable with the location. Is it a safe neighborhood. If you have small kids, is it away from a busy street, is it close to schools (with good schools)
Building and appliances – buy a house
Build it Yourself. If you have the time, patience and sanity, build your own home. Don’t build a home bigger than you need (or want to ever clean). Get a basement (if you have those in your area) and look to finish that space LATER, to extend the amount of space you have. Get good quality everything that will last, so you are not redoing it a few years later. Have great windows and doors for energy efficiency in the summer and winter months.
Be Efficient. Energy efficient appliances will help save money on the electric bills. Consider a on-demand hot water heater. It’s an upfront expense that can save you money in the future.
What tips to did you find helpful when buying a home? What house tip for new buyers did we miss?