Preparing to buy your first home is exciting, and while you\u2019ll need to give some serious thought to making the leap from renter to owner, that initial planning pays off big time when it comes to your financial health. When you\u2019re planning to buy your first home, use these tips to maintain your finances after closing the deal.<\/p>\n\n\n\n
Planning for homeownership starts years before you start looking in earnest, which gives you lots of time to make sure your credit score is in top shape. “To qualify for the best loans, you\u2019ll want a score in the 700s or 800s,” says Abby Eisenkraft, EA, a financial advisor based in New York.<\/p>\n\n\n\n
Achieving or maintaining these credit scores means making every payment on time, maintaining a low balance on your loans and credit cards, having a long credit history and a healthy mix of loans and credit cards. Keeping up with your credit also signals that you\u2019re in good financial health, which is essential for home ownership.<\/p>\n\n\n\n
It\u2019s no secret that you\u2019ll need to save money for the down payment and furniture for your new home. But making the leap to ownership also requires an emergency fund for security. When it comes to emergency savings, bigger is better. \u201cThere will always be something that goes,\u201d says Eisenkraft, “so you have to plan for extreme.\u201d Once you\u2019ve saved up at least a year\u2019s worth of expenses, you\u2019re ready to consider homeownership.<\/p>\n\n\n\n