5 Smart Moves to Make Before You Buy a Home

by Robert O'Keefe

Buying a home is exciting—but it’s also one of the biggest financial decisions most people will ever make. After years of working with prospective buyers and walking through countless planning conversations, a clear pattern has emerged: the buyers who slow down and prepare thoughtfully are the ones who feel confident, secure, and happy long after closing day.

For additional context and a deeper breakdown of each point, you can view the full conversation in the video below.

WATCH FULL VIDEO HERE ↓

1. Build Your Financial Foundation First

Before scrolling listings or attending open houses, it’s critical to understand your real monthly budget. Too many buyers underestimate how much they spend—or overestimate what they can comfortably afford.

Tracking expenses weekly using a spreadsheet or budgeting app helps clarify where your money actually goes. When buyers know their numbers, they shop with confidence and avoid stretching themselves too thin. This step becomes the bedrock of the entire homebuying process, particularly for buyers planning to live on a fixed or semi-fixed income in the years ahead.

2. Play Good Defense With Disability Insurance

Disability insurance isn’t flashy—but it’s essential. An unexpected illness or injury can derail even the strongest financial plan. Protecting your income ensures that a temporary setback doesn’t turn into a long-term housing crisis.

For buyers preparing to take on a mortgage, this type of coverage can be the difference between staying secure in your home or facing unnecessary stress. Planning defensively is often what separates smart buyers from regretful ones.

3. Don’t Skip Term Life Insurance

Term life insurance is a must for anyone making a major financial commitment like homeownership. It’s affordable, straightforward, and designed to protect loved ones from inheriting financial burdens.

Real-life stories underscore how quickly circumstances can change. Having term coverage ensures that if the unexpected happens, your home remains a gift—not a liability—for those you care about.

4. Maintain a True Emergency Fund

Down payments and closing costs often steal the spotlight, but draining savings to buy a home can leave buyers dangerously exposed. A proper emergency fund—three to six months of living expenses—should stay intact after closing.

Homes come with surprises: repairs, taxes, or life events. Buyers who preserve their emergency cushion enjoy peace of mind and flexibility, especially important for retirees or near-retirees planning for long-term comfort.

5. Look at the Whole Financial Picture

A home is only one piece of your overall financial life. Insurance coverage, savings strategies, and monthly cash flow all work together. Taking a holistic view before buying helps ensure that today’s decision still makes sense years from now.

When everything is aligned—budget, protection, and long-term planning—buyers make decisions they rarely second-guess.

Final Thoughts

Preparation isn’t about slowing you down—it’s about setting you up for success. Buyers who take the time to plan thoughtfully don’t just buy homes; they build stability and confidence for the future.

If you’re considering a move in New Jersey—especially into a 55+ or active adult community—having the right plan in place makes all the difference.