This post brought to you by BMO Harris Bank N.A. Member FDIC. All opinions are 100% mine.
This is the time to purchase a house if you are still in the market; the interest rates are still fairly low and the housing market is slowly rebounding, making it still affordable to get a great deal. I decided to put together 5 tips on how to prepare for a new home and hope this will help you and your family to get into that dream home and not go broke.
1. Evaluate your credit rating and debt if you have little less then perfect, work on that. Start paying off all your debt that is possible to pay off, start with the smallest bill first and work your way up to the biggest. That will decrease your debt tremendously and help your credit rating as well.
2. Start saving as much as you can. You want to have a little down payment for your home as well as anything that may come up once you moved into that new home. You don’t want to be house rich and cash poor and then sit there with a broken AC or broken window. Be prepared, save as much as you can.
3. Don’t borrow to your maximum. I know it is tempting if the bank tells you that you are approved for $300,000.00. However try to stay way below that and maybe look for homes in the $200,000 range. You won’t max your payments and still have some breathing room for extras like furniture’s, repairs or even an unexpected unemployment, that way you can also still save money if you don’t use every penny to pay back that mortgage.
4. Do your homework. Do you like the area, the neighborhood and think ahead, will this house be a fit for the entire family a year from now, 4 years maybe even 10 years from now. Investing into a home is a big thing and you don’t want to keep moving every 3 years (unless you like to move..lol). If you are single or just newlywed a 2 bedroom home may be perfect, but think ahead, go a little bigger just so you and the family can grow; will save a lot of headaches down the road in trying to sell and buy something else.
5. Consider all the additional expenses a new home brings; whether you are upgrading from a small home or moving out of that apartment. There will be lots of bills that no one thinks about, your insurance will be higher, your electric bill will in most cases be a lot higher, your water bill and now you even have a tax bill. Prepare for all that. It is awesome to move into a new home, but I always see that people don’t prepare for the expenses that will go along with that home, upkeep down the road as well.
These are just a few of my personal tips that I give my family and friends, or even my husband when he gets the urge to move to a new home. I love dreaming of a new house, and it’s an awesome thing, but don’t jump into it, be prepared and it all will work out and be that much more enjoyable.
BMO Harris Bank knows that these life events can sometimes be shocking, unplanned and unforgettable. With the new five-week long BMO Harris Bank Scavenger Hunt Sweepstakes they take us through an interactive game experience geared around such life events. This week we are on week 3 and you will get lots of tips and idea revolving around a new Home and your finances, to get you through a smooth transition for you and your family.
Be sure to enter for your chance to win the
BMO Harris Bank Scavenger Hunt Sweepstakes!! Don’t forget to follow BMO Harris on Facebook to keep up with all the savings tips and ideas they share. Each week opens a new environment that focuses on a life stage moment, where you can discover relevant financial information and collect tokens for a chance to win anywhere from $500-$2,000.
How do you prepare for a new home? Are you currently in the market or have plans? Did you just move? Would love to hear your tips and ideas that we all can use.
Mistee Dawn says
We are in the market for a new home, but it may be a year or so, so I need the tips!
Mistee Dawn recently posted..Why not swap that sugar with Splenda? Plus a Twitter Party! #SweetSwaps
Tammilee says
These are fantastic tips! Thank you for sharing them. We hope to upgrade to a different house in the next few years.
Tammilee recently posted..Get Away Giveaway ~ 5 night RV Rental Vacation in a 31′ double slide out motor home
Ellen Christian says
Not borrowing the most you can is very important just in case.
Ellen Christian recently posted..How to Make Gluten Free Instant Oatmeal
Jennifer says
What great tips! We bought the house we were renting from my grandparents so we never had to house hunt! We got off easy in that respect.
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Pam says
These are great tips. I also love how they are running the contest.
Pam recently posted..How to Make an Easter Centerpiece and a Homemade Pedestal Serving Stand
Liz says
I could not agree with you more about not buying up to your maximum amount. Who wants to be house poor?
Liz recently posted..Cheesy Chicken Potato Casserole
Erika says
Great tips. We are looking to sell our house and move to a bigger home (hopefully) within the next couple of years. One thing we will not compromise on is our budget – we’ve worked hard to become debt free (aside from our mortgage) and we plan to stay that way. 🙂
Erika recently posted..DIY St. Patrick’s Day Leprechaun Juice Boxes
Mama to 5 BLessings says
this looks like a fun way to win a nice prize! I am going to check it out!
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Kelsey Apley says
Great tips for sure!! We bought our first home like 6 years ago, it was a bit scary walking in to a huge investment but we are super happy!!
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brett says
#3. Its SO IMPORTANT!! they told us we were approved for over $400,000 than we could EVER comfortably afford. they don’t take into account living expenses!
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Amber Edwards says
Those are great tips to consider. We are actually embarking on our first home purchase this summer. It is a lot of information to gather and prepare for. This is helpful.
Amber Edwards recently posted..Nutella Butter Bars Recipe made on Nonstick Silicone Baking Mat by Cuina Kitchen
jenny at dapperhouse says
Thank you for posting about not maxing out your loan. This is so tempting but causes financial ruin and divorce. No need to be stressed out over your home when you could be in something you love and can afford! Great tips.
jenny at dapperhouse recently posted..Finding a Prom Dress that She Loves at a Price you Can Afford
Angela S says
These are great tips! I might be relocating in a couple of years and will be in the market to buy a house again.
Jennifer Soltys says
Don’t borrow your maximum is the best tip!! We almost did that and would have been super in trouble now.
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Nicole B says
Those are all wonderful tips to help people thinking of buying a home.
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Nicole says
I see so many people make the mistake of borrowing to their maximum then something goes wrong or needs repaired and they don’t have the money to take care of it. Great tips, Melanie!
Nicole recently posted..Thrift Treasure: Kakuro for Dummies
Pauline Cabrera says
Buying a house can be one of the biggest investments you will ever make in your life. I am sure that many of your will agree. Thus, it is very important that home buyers should consider many factors before finally making a purchase. Thanks for the tips you shared here Melanie! I am glad I came across your blog. 🙂
Nancy says
Love these tips, so true! Owning a house is something that is amazing, everyone can do it if they set their minds to it.
Heather says
It’ so important to prepare for a new purchase… and not hard to do!
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Melissa says
Great tips! We just bought our own home last year!
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Kristin says
Really great tips! We are just getting ready to buy.
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Kristin Wheeler says
We have moved many times!!! Love these tips!
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Brittany C. says
It’s stressful buying a new home! We almost bought but decided to rent recently.
Brittany C. recently posted..NeoCell Beauty Bursts Gourmet Collagen Soft Chews Review (+Giveaway – Win a $100 NeoCell Gift Certificate!)
Greta says
These are great tips. It’s sooo easy to get sucked into that “you can afford XXX amount” wh n you really aren’t comfortable there.
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