It’s a wonderful journey to be on a mission to purchase your first home. We know – we are doing it right now! There are a lot of considerations to factor into the largest purchase you will likely ever make in your life. Take a look at the short list below!
Location / neighborhood -is the home in a safe neighborhood? How close is it to power lines or any construction sites? Are there cell towers nearby?
Price – what is the asking price? how much are you willing to go over the asking price while staying in your budget?
Monthly mortgage payment – remember: your monthly mortgage should be no more than 25% of your take home pay (ideally on a 15 year fixed). In CA, 15 year fixed would price us out of the market completely!
Beds/Baths – is your family expanding? do you need an office space to be able to work from home? will 1 bathroom truly work for you? (it’s doubtful)
Schools (for children) – what are the reviews for the nearby schools in the area you are looking at? If you plan on staying 5-7 years, what age range does that put your children in their schooling? Is there an inter-district transfer option? Are you planning on homeschooling? Private school?
Debt to income ratio – ideally you want your DIR to be under 30% and definitely not over 50%. If you are working to pay off the debt to get under the 30% threshold, make sure you are working the debt snowball. Remember, you want to see progress toward paying everything off.
No new debt! – most people don’t realize this, but taking on new debt when you are buying a home is a big red flag for the mortgage loan officers. Freeze your credit and stay away from opening a new credit card.
Did any of this resonate with you? If so, make sure to schedule a time to chat at the link below calendly.com/madsenfinancialcoaching/45-minute-consultation