🏡 Ready to Buy Your First Home? Here’s What You Need to Know
So, you’re thinking about buying a house — that’s awesome! But before you jump in, let’s make sure you’re truly ready to own a home the Ramsey way. Buying a house is a huge step, and you want to do it right, not rushed or recklessly. Here’s the checklist you’ve got to tick off first:
- 💸 You’re debt-free with a full emergency fund.
No debt means less stress. You can handle your mortgage and life’s surprises without scrambling. Your emergency fund isn’t just a nice-to-have — it’s your financial life jacket. If you don’t have this, hold off on buying a house. - 💰 You have a good down payment saved up.
A 20% down payment is ideal since it means you’ll avoid paying for private mortgage insurance (PMI)—a fee that insures the lender (not you) if you don’t make your mortgage payments. If you’re a first-time home buyer, a 5–10% down payment is okay, but plan to pay that pesky PMI and work on getting rid of it ASAP. - 🏷️ You can pay your closing costs.
Closing costs aren’t free. They usually run 2–5% of the home price. If you can’t pay these upfront, buying a home isn’t going to be a smart move right now. - 📦 You can cash flow moving expenses.
Moving isn’t just about packing boxes — it costs money. From movers to new utility deposits, you need to budget and pay these without going into debt. - 🏠You plan on staying put for a while.
Buying a home is a long-term commitment. If you’re planning to move again soon, renting might be a better option. You want to build equity and stability, not lose money on quick flips. - 🤝 You have an expert real estate agent you can trust.
Don’t go it alone! A great agent knows the market, negotiates for you, and protects your interests. Find someone who listens, communicates well, and gets what you want out of this deal.
Buying a home is exciting, but it’s not the time to rush. Check off these boxes first, and you’ll set yourself up for success. Remember, owning a home is a cornerstone of building wealth — but only when done right.
Got questions or need help? Reach out to a Ramsey Trusted Real Estate Pro who can guide you every step of the way.