How Do You Know if You Are Ready to Purchase Your First Home?
Are you a First-time home buyer who is thinking about what you need to do in order to buy a home? Home ownership is a great goal, with many rewards, as well as several responsibilities. If you are a first-time home buyers who has saved enough money to buy real estate on a cash basis, you are one of the lucky few and buying a home is quickly within your reach. Many professionals may work in military or professional settings that require regular relocation. Quite a few people in this situation have routinely saved and accumulated enough capital to purchase a home on a cash basis.
Others, perhaps the great majority, are faced with financing a home. First-time home buyers who purchase a house with a home loan deal with not only the obligations of home ownership, but the obligations of carrying a mortgage. In order to apply for a mortgage and know if they are ready to buy a home, first-time home buyers must answer several questions:
- Do you have a regular income from a company or other source, such as your own small business, pensions, annuities or investments?
- How reliable is your income? Would your employer or a representative of other sources of income be willing to write letters regarding your status as an employee and your compensation?
- Do you have a good credit score and record of timely payment of debt and utility bills?
- What amount debt do you currently have? How much money do you spend every month servicing it? What is its annual percentage rate (APR?).
- Do you have car payments? How much do you owe on your car in regard to how much it is worth? How long will your car perform the service you require?
- Do you have money for a down payment? Though there are mortgages that offer no down payment, typically, a down payment of a minimum of 10 % is required to secure a home, along with being a position to together with make mortgage payments. Purchasing a home may require the use of other professionals, for example, home inspectors and lawyers, which increases down payment costs.
- How will you have the chance to afford the mortgage, tax and upkeep expenditures associated owning and financing a home?
Ask yourself those questions and speak with a Mortgage Broker to learn if you qualify for a new home purchase. Starting there will allow you to take the necessary steps to purchase a new home. Lenders often have programs based on area, credit score that could enable you to buy a home quickly.
If you are ready to purchase your first home, a new home buyer, Michele Langley is a Raleigh NC Realtor that can quickly and professionally guide you on your first home purchase and real estate needs. Feel free to look at new homes for sale and resale homes on our website to see what type of home you can buy based on home purchase price, square footage, number of bedrooms and location. We will customize a home search for you that meets your price range and price point.by