A recent study showed that buying a home is a much better option than renting in the majority of large housing markets in the United States. The study showed that homeowners will reach their “breakeven point” in three years or less. This point is the point when owning is a better financial decision than renting.
Buying a house may seem overwhelming right now, but there are many ways that you can prepare yourself to be able to purchase a home. When you are learning how you are going to purchase a home, you should not be afraid to sit down and write out a plan for yourself.
First, you will want to save enough money for a substantial down payment. The more money that you can put down the less money you will have to take out in a loan. And seeing as a loan is going to accrue interest over the years, a down payment is a great way to save money in the long run. Saving for a down payment may require that you get creative with your budgeting.
Set a goal for yourself so you know exactly how much money you want to save for your down payment. When you set your goal, you will be able to have something tangible that you are able to work toward. After setting your goal, set smaller goals that will help you build up to your big goal. When you set small goals that will help you reach your big goals, you will be able to feel a sense of accomplishment as you are working.
Second, before you purchase a home you want to make sure that you are going to be in the area for some time to come. Taking time to consider the area that you are in and deciding if that is where you want to be will ensure that you are able to find a home that you will stay in for at least those three beginning years.