When you’re looking to buy your first house, you should start by making a list of the neighborhoods you would love to live in and the price range that you can afford to pay. Before you invest such a large amount of money in a long term investment, you should make sure it’s worth it.
A lot of people dream to have their own house. For many it’s the ultimate dream. Before your quest for the first home begins, you should take some things into consideration. First of all, find out what do you need exactly and what type of house would serve you best. What do you want to do with it. Mow the lawn during the weekend, getting out of the house to go to the beach, or just a condo? When you go looking for your first house, consider it an investment for a long time, so buy appropriately. The financial part should be second to the lifestyle choice.
Investing in a house can be a good decision, as in the long run, prices will grow, even if temporarily they are down. When you pay a mortgage in the long run, you are forced to save. After 15 or 30 years have passed, that money can be used to get your kid some education or you can fund your retirement. They come with some tax benefits as well.
Still, an investment in a house has the disadvantage of a fluctuating price. When you buy a house, make sure you want to live there for a number of years, since you can’t sell it immediately when you need money, and if you do sell it, you might get a low price if the market isn’t right.
If you do want to buy a house, remember that the down payment isn’t the only thing you need to spend money one. Loan origination fees, home inspections and application fees are just a few of the extra costs.