Buying your first home is a huge investment, not only with your finances but also with your time and energy. It’s like any big project, in order to end in success, getting the details right from start to finish is important. Here are a few tips for first-time homebuyers that will help you navigate through starting the process.
Understanding Your Finances
Before getting started and beginning the multi-step process of buying your first home, it is important to understand your finances. The biggest thing when it comes to buying a home is looking at what you can afford.
Looking into your savings, calculating your monthly expenses can be helpful when looking into how much you can assign to a monthly mortgage payment. You should account for everything from utilities, food, car maintenance, student loan debt, clothing, entertainment, retirement savings, regular savings, and an emergency fund. The more you can calculate out, the better you will feel putting money into a mortgage payment.
Generally, when looking for a home, to qualify for a home loan you need a history of paying your bills on time and an adequate debt to income ratio. When looking to buy your first home, these are things to keep in mind and stay on top of and build as best as you can.
How Much Mortgage You Qualify For
Based on factors like how much other debt you have, monthly income, and how long you’ve been at your current job, a lender will tell you how much you can afford to spend on a home.
With excitement building, it can be tempting to jump right into looking for your dream home. But before you begin comparing properties on the market, you will want to get a pre-approval on your mortgage.
When searching for mortgage rates and fees, there are many different categories and options. It is important to do your own research or ask your lender to help find what option works best for you.
Buying your first home doesn’t have to be overwhelming. Maintain your finances to set a good foundation to start your first-time home buying experience and always look to learn more. If you are looking for a lender to help you with your first home purchase, call Voyage FCU today!