2022 Purchasing Resolutions

Is 2022 the year you’re determined to buy a home for the first time? That’s great! You’re not alone, either. In fact, according to a financial study done by Chase in the last quarter of 2021, 60% percent of Americans said they are likely to purchase a home this year, with a whopping 70% of that number already making concerted efforts towards that goal. Since buying a home is the biggest financial decision you’re likely to ever make, here are a few tips for making your goal a reality. 

Stay Calm 

Buying a home can feel like a full-time job. The lingo is confusing and the amount of work is challenging… especially for someone who has never done it before! That’s why it’s important to stay calm and educate yourself on the industry. You can always start by connecting with a licensed Realtor and asking questions!

Save, save, save! 

Buying a home is more than just having a cushy down payment. The old standard of 20% down is still a great goal to aim for, though myriad financing options exist. In fact, the average down payment in 2021 ended up being 12%. It was even lower for first time home buyers! 

Even if your down payment ends up being less than 20%, don’t forget to account for closing costs, a budget for repairs, and funds for furnishing your new home. Furthermore, the market is HOT right now! With such low inventory, there WILL be multiple offers and potentially even a bidding war. When house hunting, it may be helpful to look at homes $20-$50k below your actual budget to account for a bidding war. 

Adjust Expectations 

Life is a numbers game. Perhaps your vision board says that you must buy a home at age 30 and it must be 3,000 square feet with a 2-car garage. Go easy on yourself! Maybe all the 3,000 square foot homes you’re looking at have weird layouts where the space won’t actually be used efficiently. Allow yourself to fall in love with the 2,200 square foot home that has a great flow and use of space. Furthermore, age is irrelevant. The right time to buy a home will present itself. Maybe you want to pay off student loans first or buy a new car. If other financial goals take a front seat and you don’t end up purchasing until 35, then so be it! You can celebrate these huge accomplishments at any age.