Buying a home is one of the biggest investments you will make as a couple. Some of you may already have done this and others of you are preparing to buy your first home together. No matter where you are in the process, it’s important to make sure you are financially prepared to take on that responsibility.
Buying your first home
Once you know where to start, follow these tips as you begin your search:
How much are you willing to spend on a house?
Will what you are willing to spend, afford you the type of house you want?
What can you and your spouse honestly afford without having to sacrifice in other areas?
How much do you have to put for a down payment?
Perhaps the biggest issue to work out before you buy a house is how much you are willing to spend on a house. In your conversation prior to buying a house, answer the following questions to guide you in your home search:
Save for a down payment.
Typically, a down payment of 3 to 10 percent of the purchase price is required.
Stay up to date with current bills.
Make sure to check all other debt and your credit reports before adding new debt in the form of a mortgage. One rule to keep is to never let your debt exceed 35% of your income.
Consider your spending habits.
You may have to make sacrifices in some spending areas. Starting a savings account for unexpected expenses that go along with owning a home might save you some time and effort down the road.
Understand the mortgage process.
Make sure to do your research and understand your options.
Protect yourself against mortgage fraud.
Just like investing, you need to make sure your product and mortgage originators are legitimate. Protect yourself by: Making sure your mortgage originator is licensed and registered with our office; Get everything in writing and keep copies of all documents you provide; Get a complete Good Faith Estimate of Closing Costs; and Report any suspicious activity to the Indiana Securities Division.