Buying one’s first home is often as much the fulfillment of the American Dream as it is responsibility and obligation. Those considering becoming a homeowner must realize and recognize that it is necessary and essential to fully understand and prepare for the financial considerations, obligations, etc., that may be involved. When this is done, the chance of enduring the dangers, many do, of becoming rich at home, but so stressed that they make enjoying it extremely challenging, is reduced exponentially and therefore it makes sense to continue. With wide open eyes. With that in mind, this article will attempt to consider, examine, review, and briefly discuss some of the ways to proceed wisely from a financial perspective.

1. What can you afford?: Before you begin, sit down and seriously consider, introspectively and objectively, what you can afford and what you’ll be comfortable with. This differs widely from one individual to another and therefore everyone should examine their personal comfort zone! Some of the considerations should include: the down payment; personal cash flow problems; and the necessary reserves, which might be necessary, in the future. Since most first-time buyers use a mortgage to finance their home, they should recognize that most conventional loans require a 20% down payment, although many mortgages require less. Remember, though, the less you put in, the higher your monthly expenses will be. Before you start your search, make sure that your credit will be your friend and useful, instead of making your life more difficult and/or challenging!

two. Reserve for the unexpected turns of life: Wise buyers create a reserve, in case there is a downturn in your career, etc., which reduces your income and cash flow. I recommend an amount equal to about six to nine months’ mortgage (including principal, interest, property taxes, and escrow items), plus fixed monthly costs (usually utilities).

3. Reserve for immediate preparation: There is usually a degree of work a new homeowner wants and/or needs to do to make the house their personal home! These items often include paint, flooring (carpet and/or hardwood floors), etc. It is wise to overestimate and be prepared!

Four. Reserve for repairs: Be prepared for the repairs that the owners will have to make. Some of these include: appliances, electricity, plumbing, etc.

5. Future maintenance: These items are things like roofs, patios, exteriors, and regular items.

6. Reserve for reforms: What would you like to change in the future? Be prepared for these renovations, such as kitchen, bathrooms, etc.

A wise and prepared homeowner is usually the one who will derive the most happiness from his home. Will you have the discipline to proceed wisely and preparedly?