![Buyers, Here's Your Guide to Make Your Homeownership Dream Alive in 2025 [PART 2]](https://media-production.lp-cdn.com/cdn-cgi/image/format=auto,quality=85,fit=scale-down,width=1280/https://media-production.lp-cdn.com/media/c4d6f23f-6c8d-426f-bd08-2b51ad14181a)
Planning to buy a home in 2025? With only a few days left ‘til the new year, it may seem like an extremely distant and daunting goal. But the good news is that you still have the whole year ahead of you, which means you can take it step by step. Getting started today is already a huge feat, so here's a comprehensive guide that you can use to navigate through this journey toward your homeownership dreams.
Building up your savings is a fundamental part of your home-buying journey. Whether you're purchasing next year or in the next few years, you’ll need funds for things like down payment, closing costs, maintenance costs, and even moving expenses. Once you’re done evaluating your finances, create a plan to save up for what you need. Here are some things you can do:
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Create a dedicated savings account and automate savings.
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Set a down payment goal.
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Consider ways to increase your income.
Saving up for a house can be pretty intimidating, but it doesn’t mean sacrificing everything fun in your life. With a combination of strategy, discipline, and smart financial planning, it isn’t impossible to reach your savings goal that will help achieve your homeownership dreams.
Homeownership comes with a lot of expected and unexpected expenses that many first-time home buyers may not fully anticipate. When setting a realistic monthly budget for a home, here are some things to include:
Before the home purchase:
- Down payment
- Closing fees and other legal costs. Which typically range from 2-5% of the property's purchase price. Closing costs usually include attorney fees, title fees, as well as inspection and appraisal fees.
After the home purchase:
- Monthly mortgage payments, which is recommended to keep at or below 25% of your after-tax income to stay on solid financial ground.
- Home Insurance
- Property taxes
- Homeowners association fees, if applicable
- Utilities
- Regular maintenance, such as lawn/yard care and seasonal upkeep
- Unexpected repairs, such as broken appliances, damaged windows, etc.
No matter how exciting, buying your first home is a complicated undertaking. Would you want to risk your hard-earned money and your sanity going through the process alone? Building a team of knowledgeable and reliable professionals can make all the difference. Here are some of the people you need in your corner to help you streamline the process and avoid unpleasant surprises down the road.
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Real estate agent
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Mortgage lender
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Home inspector
Other professionals that you may need in your team include: a financial advisor who will ensure you’re prepared for the financial responsibilities of homeownership, a home appraiser who will determine the value of the property for sale, and a real estate attorney who will review documents and agreements carefully for your peace of mind.
Finally, remember that any significant milestone in your life requires time and patience, including your journey to homeownership. Remember to set realistic expectations while staying committed to your goals. Be prepared for the ups and downs of the process, especially if you're in a competitive market where bidding wars are common and your offer might get rejected. Avoid rushing into a decision and trust that the right property that fits your needs and financial capability will eventually come along.
