Step 1: Decide if you are ready to be a homeowner
The first step in the homebuying process is determining if homeownership is right for you and if you’re financially ready to buy a house.
While owning a home has many benefits, it also comes with some responsibilities. Homeownership means you’re responsible for the maintenance and upkeep of your house. Everything from cleaning gutters to having functioning appliances is up to you as the homeowner. Every 10-20 years, you will have to replace your roof, furnace or air conditioner. It’s good to start a separate savings account to prepare for these costs and know how old these major features are in a home you’re considering buying.
So, before embarking on the homebuying process, make sure you have the time and money to maintain your home. The general rule is to set aside 1% of your home’s purchase price for maintenance and upkeep.
You don’t have to know how to maintain your house at this stage in the homebuying process, but you should ensure you’ll be able to take care of your home.