Saving for a Rainy Day

Purchasing a home is likely to be the largest investment you will make in your lifetime, so plan ahead before falling in love with your Virginian dreamhome. Most mortgage brokers and financial advisors agree that saving three to six months of lifestyle expenses is a crucial step before accumulating a down payment. Freddiemac.com has a list of the financial risks associated with home ownership, some of which include:

• 3-20% down payment
• 2-7% in closing costs
• Repairs and maintenance

Assessing your finances with these figures in mind will help you decide when the right time to buy will be. Financial advisor Rob Black contends that maxing out your 401k should always be a priority, claiming 'there is no shame in renting. There is shame however, in not meeting your financial goals and missing your retirement.' Saving and being smart with your money ties into both homeownership and your total financial picture.

Jetsetter or Homebody?

Are you and your spouse looking for your first love nest? Or are you a young businesswoman traveling the states three weeks out of the month? Owning a home is a serious commitment. If the toilet explodes, there is no landlord to call, because guess what? You're it. Making sure you are up to the challenge both financially and emotionally will help ensure you make the best choice.

Resources for Virginia Real Estate and More:

The Virginia Department of Professional and Occupational Regulations, www.state.va.us, is a long title for a very useful site, full of lots of solid Virginia property information.

Cyndi Popper is not a financial advisor. Please consult with a broker or advisor before taking any action on any financial product mentioned.