If you’re considering buying a home, congrats! This is a huge step. To be sure you’re ready, follow my home buying guidelines below to help you achieve financial freedom.
Be completely debt-free.
Have at least a 20% down-payment saved up (excluding closing costs).
Have 3-6 months of monthly expenses saved in a fully-funded emergency fund.
Have 5% of the home price saved up to pay closing costs.
Be stable in your job (no job changes within 3-4 months before or after buying).
Buy in an area you can stay for at least 5 years.
Never buy a house with someone to whom you are not married.
Do not buy a house that you cannot afford on ¼ of your take-home pay on a 15-year fixed rate mortgage.
Once you buy your home, pay cash for any and all renovations, home improvements, furnishings, etc.
Buy a house with a comfortable enough mortgage payment to give you room in your budget to make extra mortgage payments. (Four extra mortgage payments per year can shave off 11 years from your mortgage!)