Your home is probably the biggest financial investment you will ever make, and you do this for the protection and comfort of a greater asset, your family.
The key to successful home ownership is how you save and use your money.
Couples and interested individuals should be dedicated to saving for a down payment.
Having an adequate down payment saved will do several things. It will help in obtaining a home loan at a favorable interest rate. It will also result in a lower monthly payment.
The second thing to remember is that this first home does not have to be your ultimate dream home. Purchase a basic home that has at least two or three bedrooms. It does not need fancy landscaping, expensive trim work, a landscaped front yard or high-end kitchen appliances. It needs to be in good condition, sufficient to meet your basic housing needs and be well maintained.
With this home, the amount needed for the down payment will be less. There will be other fees. Talk to your real estate agent about that.
Approach this first house as if you are going to live in it for many years. If either the husband or wife gets a pay raise, part of it should go into a saving’s plan, and a part of the savings should be dedicated to the purchase of your next home.
While living in this first house, take steps to give it more sales appeal. Paint the walls a pleasant but neutral color. Keep the carpets clean. Go ahead and plant a few bushes or flowers in appropriate places to increase the curb appeal. Keep everything in working order. Install a home monitoring system with a transferable contract option.
Enjoy your home; make it better than it was, and save your money.
When you are ready to move again, be sure to use caution. Talk to at least two different real estate agents and find out if houses are selling for the appraised values or if the market is weak. Is there a demand for the home you are selling? If the market is weak, you may have to wait a little longer.
However, the day will come when housing values increase, and it will then be time to sell. With the increased value of your house, you should be able to sell it at a price that pays off the mortgage and leaves you with a bigger down payment for the next house.
It is important to follow the same steps for each house you purchase. You do not ever want to purchase more house than you can reasonably afford.
The ultimate goal should be to save money for a down payment. Choose a home within your financial means that fits immediate and near-future needs. Take care of the house. Keep everything in repair. Add the security system and be patient.
Watch the market and determine if this is the best time to sell and to buy. Your second house may be your final house. However, depending on the size of your family and other factors, you may need to move again. Always follow the same steps, and the process will become easier each time.
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