Homebuying
What Is Homebuying?
Buying a home means investing in a property you live in or rent out—a major financial and lifestyle decision.
Why It Matters
Owning a home lets you build equity over time (your ownership increases as you pay it off), and in stable markets, it's often cheaper long-term than renting. It also adds stability and gives you the freedom to customize your space.
Upfront Costs to Expect
- Down Payment: Usually 5%-20% of the home's price (lower with FHA or VA loans)
- Closing Costs: 2%-5% of the purchase price (fees, inspections, taxes, etc.)
- Moving & Setup: Furniture, appliances, repairs, etc.
Ongoing Costs
- Mortgage Payment (loan + interest)
- Property Taxes (can vary a lot by area)
- Home Insurance
- HOA Fees (if applicable)
- Maintenance & Repairs (budget ~1% of home value per year)
Are You Ready to Buy?
Ask yourself:
Do I have a steady income and emergency fund?
Can I afford the monthly payment + extras?
Am I planning to stay for at least 5 years?
Do I understand the buying process and market?
Steps to Buy a Home
- Check your credit score (higher = better mortgage terms)
- Save for down payment + closing costs
- Get pre-approved for a mortgage
- Work with a real estate agent
- Find the right home and make an offer
- Get a home inspection + appraisal
- Close the deal and move in
Mistakes to Avoid
- Buying before you're financially ready
- Not factoring in maintenance or hidden costs
- Shopping for a home before getting pre-approved
- Letting emotion override your budget
- Skipping the inspection
Goal for Young Adults
If you're interested in homeownership, start preparing early by building credit, saving up, and understanding the process. A home can be a great long-term investment—but only when it fits your budget and life stage.
