WHEN TO BUY YOUR FIRST HOME

Buying your first home is always a huge decision.  The decision to buy needs to be sooner rather than later.  The earlier you get into the game, the better you will be positioned to make the move up to a larger home.

1. Start with a home that fits your finances.  Do the math!  Multiple your yearly income by 4 and you will arrive at a figure that will most closely approximate how much house you can afford.  Example: Yearly income: $30,000 x 4 = $120,000 home.  Don't push the limits of your income; be conservative and leave a buffer for unforeseen emergencies that may happen.

2. A "starter home" is just that - a place to start.  Getting your feet wet as a home buyer is important.  Educating yourself along the way enables you to move through the home buying process with less apprehension.  A "starter home" is just that a jumping off place for you to enter the housing market while learning the "ins and outs" of home ownership.  

3. Create a plan for "moving on up".  Your plan to "move up" needs some forethought, not a knee jerk reaction.  It will be not so much what I can afford, but rather what do I need.  Just because you win the lottery does not mean you buy a mansion.  Let your housing needs guide you in your decision to move up to a larger house and then "do the math"!

4. Don't be afraid to "downsize".  As your housing needs change and your family dynamics change you may find you have more house than you need.  Downsizing is not a curse word!  That big house may no longer be necessary for a number of reasons.  Downsizing makes room for others to move up while you relocate to a more practical home setting.

Buying your first home is like your first kiss - something you look forward to and something you never forget.  Buying your first house creates a pattern for your future housing decision.