Saving For Your First Home? Here’s Everything You Need to Know

Tired of paying rent each month without getting any return on your investment? Depending on your current status in life, it could be time to start thinking about purchasing your first home. Investing in property is an exciting but complicated endeavor, that requires thoughtful consideration and proper planning. If you’ve been saving or are just starting to save for your first home purchase, here are a few questions you might have that will make sure you’re prepared.

• How much can I afford to spend? The first step is determining how much you can afford to spend on the house of your dreams. Based on your current financial situation and needs, it’s important to be realistic and not take on more than you can handle. Knowing how much you can afford to spend before looking at houses makes sure you stick within your price range and not be tempted to purchase a house you can’t afford.

• How do I choose a mortgage lender? It’s so important to find a mortgage lender that you trust and has your best interests in mind. Though working with a bank is a good option, a company that specializes in mortgage lending like GSF Mortgage can provide the expert attention and guidance through this important process. Having a positive relationship with your lender makes the overall process run smoothly and be less stressful in the long run. 

• How much do I need to save for a down payment? When you know how much you can afford to spend on a house and get pre-approval for your mortgage loan, you can determine what you need to save for a down payment, depending on your goals.

• How much do I need to put aside each month? Once you know what kind of mortgage you qualify for and what you need for a down payment, you can determine how much you need to save each month and how long it will take you to reach your down payment savings goal. You want to make sure to keep your current expenses in mind, save as much as you can without sacrificing too much.

Once you have your answers to these questions, you’re well on your way to unlocking the door to your new home. Home ownership is a rewarding experience, and with proper financial planning, buying your first home doesn’t have to be stressful.