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Home Buyer's Guide

ARE YOU READY TO BUY YOUR FIRST HOME?

Buying your first home can be an exciting and daunting process. As a first-time home owner, there are many financial and practical considerations to think about before taking the plunge. It is important to research the current real estate market, understand the different types of mortgages available, and create a realistic budget. Furthermore, you should ensure you understand all the costs associated with homeownership, such as closing fees and insurance. Working with a good realtor will save countless headaches down the road when it comes to taking out a mortgage and becoming a homeowner.


What is a healthy debt-to-income ratio?

For first-time homeowners, a debt-to-income ratio of 36% or less is generally considered to be a healthy debt level. This means that no more than 36% of your gross monthly income should go toward debt payments, including credit cards and car loans as well as your mortgage. To obtain a mortgage loan at a favorable interest rate, it's important to have a debt-to-income ratio that is within the lender's requirements. Working with an experienced financial advisor can help ensure that you stay at or below the recommended debt threshold when purchasing your first home.

WHAT Type of Home Will Best Suit Your Needs?

If you're a first-time home owner, choosing the right house for your needs can seem daunting. Consider factors like the size of your family and how much space you need. A condominium could be a great choice if you want to own rather than rent but don't need a lot of room. An apartment is similar to a condo in terms of limited space, but sometimes it may come with added amenities. On the other hand, if you're looking for more room to spread out, then a single-family home would probably fit better. And if living with guests or relatives would be beneficial financially, then perhaps a duplex is the option that best suits your needs. Ultimately, it all comes down to what works best for you and your family's budget and lifestyle.


How much mortgage will I qualify for?

As a first-time homeowner, being aware of mortgage rates and what you can realistically qualify for can alleviate some anxiety when entering the housing market. Mortgage rates vary based on individuals, and having a good credit score is essential to qualifying for the mortgage rate you need. Working with mortgage brokers or using mortgage calculators to get an idea of available mortgage opportunities is recommended. Additionally, knowing what and how much money you have available in terms of savings, income, employment stability, and other investments all affect your mortgage rate qualifications as a first-time homeowner.

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