If you’re a first-time buyer, there are some essential things to consider when buying a house. It’s a huge life-changing decision, both financially and in terms of lifestyle.
Do this before doing anything else.Head over to your bank and speak with a loan officer.They will help you calculate your debt to income ratio (general rule of thumb, you want your monthly debt to be no more than 40% of your monthly gross income).
The affordability of your monthly payments is not determined just by the cost of the home itself. It is also affected by mortgage interest rates, closing costs, and various fees associated with the home-buying process.
While most people opt for conventional loans, there are also FHA, VA, and 5/5 ARM (adjustable-rate mortgage) loans. Conventional loans require 20% of the cost of the home, but other loans may need less.
When buying a house, it’s important to recognize your must-haves. These are non-negotiable qualities of the home that you need in your life.These deal-breakers can make or break your decision to pull the trigger on making an offer. A home with all the must-haves can also entice you to spend more than you originally anticipated
Find the right real estate broker, or agent, as they can make or break the process of buying a house. Find one that you trust and has your best interests in mind.Doing so will save you money and help teach you the nuances of inspecting homes and ensuring you are getting your money’s worth.