Your dream of buying your first home is coming true. Learn as much as you can to prepare for the challenges ahead while maintaining the financial plan you’ve already put in place.
Review your current financial plan. It may include monthly savings, life insurance or saving for retirement. Buying your first home may mean updating your financial plan.
Consider how much to spend on buying your first home and qualifying for a loan.
Income is critical in determining what you can afford for housing-related expenses. Loan programs have different rules regarding the percentage of income you can apply toward monthly mortgage payments.
Lenders consider your debt when qualifying for a loan. Loan programs have different rules to determine the percentage of income that can be applied towards long-term debt.
Buying your first home may increase your monthly household expenses and change your financial plan for retirement or starting a family.
If something happens to you or your spouse, will you still be able to pay the mortgage? What happens if you become ill or disabled and can’t work?
Your financial plan may need:
While buying your first home is a big expense, don’t neglect saving for retirement. Even a small monthly amount will make a difference in your retirement years.
A solid financial plan is based on protection and savings. Northwestern Mutual can help take the risk out of life by including life insurance and disability insurance in your financial plan so buying your first home is everything you want it to be.