When you start thinking about house buying, it’s easy to let your emotions run the show. Before you know it, you’re stalking homes for sale on your home-browsing app, rearranging your schedule so you can do drive-bys, and researching creative financing options that would allow you to buy a house with next to nothing down. It’s all too easy to land in a house you can’t afford, and that mistake can affect your ability to build wealth in the long run. But understanding the steps of the home-buying process empowers you to make smart decisions about your home purchase. The Home-Buying Process Is a Marathon Let’s take a deep breath. Buying a house takes time. And no house—even that perfectly cute bungalow on the corner with the fenced-in backyard—is worth jumping into before you’re ready. The decisions you make in the home-buying process can make a difference between a home that is a blessing to your family for years to come and a home that becomes such a financial burden that you feel like you can’t breathe. Buying a house doesn’t have to be a stressful, draining experience. It can actually be a lot of fun, especially if you’re making smart decisions that focus on the long term. These tips will help you: It’s tempting to skip the money question and jump straight into looking at homes in your area. After all, home shopping is way more fun than thinking through your finances! But a weak financial foundation is a recipe for regret when it comes to your home purchase. Don’t shortchange your future by having a short-term perspective. You will build years of memories in your home. You’ll share countless meals in the kitchen and spend hours enjoying warm summer days in the backyard. Do you want those moments overshadowed by financial stress? Buying a home is probably the biggest purchase you’ll ever make. Are you sure you’re ready? Answering these two questions will help you know! Before you begin the home-buying process, we recommend paying off debt and saving up 3–6 months of expenses in an emergency fund. Being financially ready to buy a house is important. Here’s why: When you no longer have a landlord, the responsibility of paying for repairs falls on you. So what happens if your water heater bursts after just three months in your new home?When you don’t have room in your budget and no savings to fall back on, you may be eating ramen for the rest of the month to get that fixed. But if you have a full emergency fund and no debt taking up real estate in your monthly budget, your whole life won’t be rocked by an unexpected repair.
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