It’s a great thing when you learn from your own mistakes. The next best thing? Learning from another’s. Here, you’ll do just that.
Trent Hamm from The Simple Dollar writes about the 12 things he and his wife should have considered before buying their first home. His “errors,” as he calls them, not conscious mistakes, include:
- An apartment offers more benefits than you think
- A 20 percent down payment is incredibly important
- Location is incredibly important
- Shop around for your mortgage and get pre-approved
- Go minimal when you’re choosing a home
- A 15-year mortgage is virtually always a better idea than a 30-year mortgage
- Never go above using 40 percent of your take-home pay as debt payments
- Flipping requires a lot of sweat equity; it’s definitely not just pure profit and reality show fun
- You are going to want a healthy amount of cash in hand when you move
- Fill rooms with very basic furnishings and upgrade slowly from there
- Adopt a ‘one in, one out’ policy from day one
- Put in the effort to know all of your neighbors
Trent’s tips read like personal stories, and they’re packed with helpful first time home buying advice. Take the time to read this one!