I am a big advocate of thinking hard and long about buying your first home. Whether it is a Novi home or a West Bloomfield home it is going to be one of your biggest investments you are going to make. The reason I say this is that too many first time home buyers over the last few years have lost their homes.
Luckly some of the bad loan choices that were available are gone. No longer can borrowers or loan officers stretch borrowers incomes into homes they can’t afford. Their are very few adjustable rate mortgages any more… most likely you won’t even be offered one. No longer will banks or lenders allow big debt ratios that borrowers really can’t pay. These are all good things.
Now many of the Metro Detroit home buyers now are going with a FHA loan. I heard that close to 50% of all home loans are now FHA loans. But even though FHA are conservative I still think first time home buyers should set up a budget.
Here are a few links on how to set up a budget
- How to set up a budget
- How to figure out your finances if you are in your 20′s
- How to set up a household budget
I want you to keep your Novi home, your Redford home, or your West Bloomfield home. Sure I can make more money selling you a higher priced house home. But it is more important that you keep your home. So my advice is too sit down and figure out what you can truly afford. Do a budget and live on it for a few months. Put that house payment each month in a bank account. By doing that a couple of months you will save up a few dollars too.
If you are living in an apartment and have to pay rent then put the difference between your rent and the new house payment in the bank for a few months. By doing this you can see if you can afford the house. Owning a house always costs you a little more than you expect so figuring out a budget and buying below your means will always help.
“Life without love is like a tree without blossoms or fruit.”
“Love has no other desire but to fulfill itself. To melt and be like a running brook that sings its melody to the night. To wake at dawn with a winged heart and give thanks for another day of loving.”
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