Tips for First-Time Homebuyers

Thinking about making a large purchase, like a home? An investment such as a house can be intimidating, but here’s a few ideas that can make the process a little less confusing:

1.      Down Payment – This is the most common question we get asked…how much should I put down?  There are a lot of different variables that go into this question, but in terms of your best practice, aim for 15% down at the very least.  This will make financing a lot easier.

2.      Do Not Overextend – The biggest Piece of advice when we advise clients is to buy a home is do not live outside of your means of what you can afford. Overbuying and having a monthly mortgage payment outside of your budget could cause extra stress and risk.  It can be difficult to find your “dream home” in what seems like a competitive market but think of your monthly income and budget and filter your search to meet your buying criteria.

3.      Interest Rates – Half of a percentage point can potentially mean tens of thousands of dollars in terms of interest payments.  While higher rates have been a shock these past few years, keep in mind that you do have the ability to refinance down the road.  Interest rates are a considerable part of this financial obligation, and doing what you can to get the best rate will be a big benefit down the road.

4.      Extra – Once you buy that new home, your job isn’t quite over.  Don’t let extra expenses from moving, buying new furniture, and improvements derail you financially.  Understand going in that you’re likely going to see some extra expenses down the road.

Buying a home for the first time is also something that needs to be discussed on a case-by-case basis.  If you want to know what your financial situation will look like by purchasing a home, or just want to fire away with any questions you have, we’d love to talk to you. Please reach out with specific questions to sdieck@pistonewealth.com

Disclaimer: Nothing on this Blog constitutes for market predictions, planning advice, investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. Content in this material is for general information only and not intended for specific advice. Investing involves risk including possible loss of principal. From reading this Blog we cannot assess anything about your personal circumstances, your finances, or your goals and objectives, all of which are unique to you, so any opinions or information contained on this Blog are just that – an opinion or information. You should not use this Blog to make financial decisions and we highly recommend seeking a professional you trust who is authorized to provide investment and tax advice.  

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors, LLC and Pistone Wealth Advisors are separate entities.