Before You Buy a House, Invest in Your Financial Education

Becoming a homeowner will dramatically change your life. You’ll have to contend with mortgage payments, plus other costs, like taxes, insurance, routine maintenance, and repairs. If you’re going to take such a major step, you need to educate yourself so you can make wise decisions.

You Have to Find the Right Home for Your Family

Homebuyers often choose a house that’s too big and too expensive. When people focus on what their relatives and friends will think or take advice from people with completely different goals and circumstances, it can lead to financial disaster.

If you get in over your head, you might toss and turn at night trying to figure out how to pay your mortgage and other bills. You might work overtime, feel like you’re never home, and barely make ends meet. You might have to abandon plans to buy a new car or take a vacation. You might even be forced to delay your retirement.

You need a house that will work for your family and fit your budget – not somebody else’s. To figure out how much you can realistically afford, you must consider all the costs associated with homeownership – not just mortgage payments – and all your monthly expenses. Your dream house might be out of your price range, even if a lender is willing to give you a large enough mortgage to buy it.

You Have to Get the House Inspected

A home that’s in poor condition will cost you money and possibly put your family’s health and safety in jeopardy. It’s not always easy to tell if a house has serious problems, which is why it’s essential to have it inspected. It’s equally important to know what a standard home inspection does and doesn’t cover so you don’t assume that a house is fine, then discover that it has a major issue, like mold or termites.

You Have to Choose the Right Mortgage

You’ll most likely need to take out a mortgage to buy a house. Securing a loan with competitive terms can help make homeownership affordable.

To get the best deal, you’ll need to get your finances in order in the months before you begin shopping for a new home. Paying your bills on time and reducing your debt-to-income ratio can improve your credit and help you get approved for a mortgage with favorable terms.

Lenders generally offer loans with fixed and adjustable interest rates and terms of 15 and 30 years, and some companies offer additional options. Lenders allow borrowers to make low down payments, and some don’t require any down payment at all.

That flexibility can be a blessing – if you understand all the options and you can figure out what will work best for you. To do that, you’ll need to know how your mortgage type, term, and down payment will affect your monthly payments, the total amount of interest you’ll pay, how long you’ll have to make loan payments, and how much money you’ll have available for things like saving for your children’s college education and investing for retirement.

Educating Yourself Now Will Save You Money Later

Homebuyers make all sorts of blunders that cost them down the road. One mistake can cost tens of thousands of dollars.

You might be eager to buy a house, but if you rush into the homebuying process unprepared, you can make a mistake that you’ll pay for later. Before you start searching for a new home, take the time to learn how things work and what to watch out for.

The First-Time Homebuyer Masterclass will walk you through the entire homebuying process, define key terms, and give you the information you need to make critical decisions. It will also point out areas where homebuyers tend to get tripped up so you can avoid making those same mistakes.

After you finish the course and pass the final test, you’ll receive a certificate of completion that you’ll be able to share with your lender, housing counseling agency, or down payment assistance program, if required. Enroll in the First-Time Homebuyer Masterclass today.