Looking for a new place to call home? Got questions? Click here to have all your first time home buyer questions answered.
The time has come to buy your first home. As expected, there are a lot of things on your mind.
You have plenty of first time home buyer questions buzzing through your brain because you want to make the best decision for your future.
Continue reading this article to learn the answers to your burning questions about buying a house for the first time.
Answers to Your First Time Home Buyer Questions
Ready to take that next step? The list below is meant to help you get through the entire process of buying a home for the first time.
How Much of a Down Payment Do I Need?
There are a lot of different opinions on whether you should make a big or a small down payment on your new home. Traditionally, people pay 20% as a down payment but now there are programs that allow for a much lower down payment.
If putting 20% down on your new home is going to put you in a bind financially, you might want to look into programs that will allow you to put less down on the home.
How many homes Can I Afford?
Knowing how much home you can afford is going to make your life a lot easier. If you get in over your head, you’ll likely spend more time at work than you’d like and could even lose the house if you get into trouble with debt.
Figure out how much money you or you and your partner earn per month, list all costs you will have after the home purchase, and any other expenses not related to your home.
A good rule is to not spend more than 28% of your income on your housing and not more than 36% of your income on debt. Crunch the numbers and see where you’ll stand before you make a move to your new home.
What Other Expenses Are There Beyond the Purchase Price?
When you’re deciding on your down payment, you should keep in mind there are other expenses to think about.
You need to figure out how much it is going to cost to move into the home as well as how much closing costs are going to be. If you’re closing in North Carolina, this BiggerEquity article can help you calculate those expenses.
How Can I Get the Best Mortgage Rate?
Being a first-time home buyer means you don’t have any proof that you’re a responsible mortgage holder.
The best thing you can do leading up to the time you apply for your home loan is to pay all of your bills on time, keep all of your credit accounts open, and remain in good standing with creditors. You should also make sure to pay your credit cards down to a maximum of 30% utilization across the board.
Read More Great Lifestyle Articles
Now that you have your answers to your first-time home buyer questions, why stop learning there? We have many other great lifestyle articles on our site that can help you make it to the next level in your life.
Navigate through our site and come back later for more great reads!