Get your 401(k) match. Most financial advisers say that saving for retirement—at least enough to claim your employer's 401(k) match, if your employer offers one—should be your biggest savings goal.
Accumulate the down payment. A marriage or impending child often creates a powerful emotional incentive for immediate homeownership. Some people put retirement savings temporarily on hold to put together a down payment for their first home.
Tap retirement accounts with caution. Uncle Sam waives some of the usual retirement account early-withdrawal penalties for new home buyers.
Don't buy without an emergency fund. Don't sink every cent you have into a house down payment. Make sure that if one of you should lose your job, you could get by on savings and one income for long enough to find new employment.
Budget for other homeownership expenses. Homeownership has a slew of other costs besides principal and interest payments. Make sure you factor into your calculations property taxes, homeowner's insurance, maintenance costs, and even homeowner's association dues.
Work toward a mortgage-free retirement. One of the perks of a fixed-rate mortgage is that your housing costs largely stay the same from year to year, while your income is likely to increase.
For the full article, visit U.S. News & World Report.
