Things To Consider Before Buying Your First Home

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Growing up, most, if not all, of us go through a stage where we play "house" and pretend that we have our own home to manage and take care of. And though it may seem like just a game to us when we're younger, it quickly becomes reality once we reach adulthood and start to seriously start looking into purchasing a home of our own.

Let's cut right to the chase - buying a home is a huge decision that certainly requires a lot of careful consideration. That said, if you're at the point where you're starting to think about becoming a homeowner, make sure you go over these things before you do anything:

Your income vs. your debts.
Even if your salary is high, that doesn't mean you can go out and purchase the most expensive house on the block. To figure out how much house you can truly afford, you need to take your monthly debts into consideration - how much of that high salary is going to things like student loans, credit cards, and car payments? Once you subtract these expenses from your monthly income, you'll have a much more realistic idea of how much you can put towards a mortgage each month.

Your five year plan.
Or maybe your two or ten year plan - whatever you're currently thinking about at the moment. While you may be financially ready to purchase a home, you also need to consider how your life may change in the future. For example, if you're thinking about finding a new job, you'll have to factor in the chance that your salary may change. Or, if you have plans to go back to school or buy a new car, you'll need to have enough room in the budget for these new expenses.

Your ability to qualify for a loan. 
While you may feel like you can afford a certain home, a lot of the power lies in the hands of lenders. Before they approve your application, they'll look at things like your pay stubs, your tax returns, and of course, your credit history. Knowing this, it's a good idea to look into things like your credit report before you apply to get an idea of where you're at.

Whether you're thinking of purchasing a home here on Long Island where we're headquartered or somewhere else in the country, the team at American Investment Planners LLC would be happy to help you figure out if you're ready and answer all of those financial questions we're sure you have.

To speak with our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.