news 3 weeks ago
Want To Finally Buy Your First Home? Get Your Ducks In A RowWochit Postables
Liking hanging wallpaper, the key to success in buying a home lies in careful, thorough, and sometimes tedious preparation. Business Insider reports financial planner Riley Poppy of Ignite Financial Planning in Seattle, Washington, says there are five steps to take right now. First, make sure you know why you want to buy, where you want to buy--and when you want to buy. All these will impact your options down the road. Second, do you have an emergency fund? Single earners should save at least six months' worth of expenses. Dual-income households: three months' worth. Third, do you have enough insurance? You'd better. Have life insurance and disability insurance in place. Fourth, what can you can afford? The mortgage, insurance, tax, and interest combined should be less than 30% of your household's monthly take-home pay. Once you have all that sorted out, take the fifth step: open a savings account so you can save for your downpayment. Happy house-hunting!