by Stacy Francis, CFP®, CDFA
My husband and I just purchased our home and are so excited and smiley these days, when you see us you think we have slept with a hanger in our mouth. A home is something almost everyone wants, but acquiring one can take a lot of work – and money. While it would be impossible to cover everything you need to know in one little entry in my blog, here are a few things to keep in mind if you are – or are considering – buying a home.
- The higher your credit score, the lower the interest rate you are going to score, meaning the more house you will get for your money. While many people with less-than-excellent credit scores can get mortgages even today, it is probably going to cost you.
- Down payments can come from unusual places. It is generally a good idea to make some sort of down payment when you buy a home, but if you don’t have the cash saved up, there are other ways to get your hands on one. Try asking your employer for a loan against your 401(k), or consulting a private bank.
- Houses are illiquid investments, and especially these days. Before you purchase your first home, it is a good idea to think about the future – whether you’ll need more room for children or may need to relocate to a new area. You never want to be in a hurry selling a house because that tends to get expensive.