Buying a home is always exciting, if a bit overwhelming. But when you’re a first time buyer, the process can seem even more complicated.
"The biggest hurdle for the housing market in the middle of 2017 is low inventory," Senior CFP Board Ambassador Jill Schlesinger, CFP®. "Housing starts, housing permits, new home construction and pending home sales have all slowed this summer. This all adds up to fewer options for those looking to buy a house, especially for the first time."
Follow these simple buying tips, from Schlesinger and the Certified Financial Planner Board of Standards, Inc.
Run the numbers.
Understand how much home you can afford to buy and whether home ownership might preclude you from addressing other important financial issues in your life, like paying off debt. A financial planner can help you understand how your housing choices can support your overall financial plan.
Start the mortgage process/correct credit report mistakes
. If you have not done so in a while, go to AnnualCreditReport.com and request your free copy. It's important to correct any errors on the report before you start the mortgage process.
Even if you are working with a realtor, check out new listings and spread the word throughout your network. You never know who might be about to list a home.
Keep your emotions in check.
Even with limited supply, there are a lot of houses out there. Be careful not to blow through your budget or put yourself in a position where you own two homes.
Source: Certified Financial Planner Board of Standards, Inc.
Published with permission from RISMedia.