The current housing market has lowered home prices, making homeownership more available to first-time buyers. But smart buying doesn't always mean getting the best price for a piece of property. There are many factors to consider. Bankaholic®, a financial web site, recommends taking these 5 steps to be better informed.
1. Accounting for Extraneous Expenses 2. Acknowledging Special Assessments 3. Finding a Manageable Mortgage 4. Determining How Much Home to Buy 5. Welcoming Your New Home into Your Basic Budget
I think the real key here is to not stretch your budget to the very limit, b/c there will definitely be additional costs - replacing fixtures, initial improvements, painting, rise in property taxes, etc. If you max out on day 1 you'll not be able to handle these costs.
Leave yourself a little wiggle room and you'll sleep better too!
