Search Tips for Your First Home
You'll need to list your debts and income to determine the maximum payment you could afford while paying a mortgage. Most financial experts suggest paying no more than one-third of your income on rent, but that number may change for a mortgage. Remember that home ownership comes with costs that include:
- Home owner's association (HOA) fees
- Landscaping costs
- Mortgage insurance
- Property taxes
- Utilities
- Yearly maintenance
Getting Financing Early in the Search
Two terms you'll need to learn include "prequalified" and "preapproved". Each is useful, but only one will help you when it comes to making an offer on a new home. Getting prequalified is pretty simple, and all it takes is giving a bank your basic financial information to get an idea of how much mortgage you can afford. It's a helpful number, but it won't help you land the home of your dreams.
Preapproval, on the other hand, is a process that requires much more information be given to the bank in order to see if you have the creditworthiness to get mortgage approval. The reason getting preapproved is so important is because sellers like to see that you're serious about buying a home. Preapproval tells then that you're looking to buy and aren't just window shopping for a new home.
Preparing Financially and Domestically
The reason you need some savings above and beyond what you'll spend to obtain your mortgage, is because there are always little things that go wrong or unexpected purchases that come along with buying a home. As long as you have a modest amount of savings to cover those costs, you won't have to deal with costly credit cards or loans to cover those last-minute expenses.
Additionally, purchasing essential appliances like a washer and dryer and the refrigerator in advance of your move-in date should help you avoid having to shop for these items at the last minute when it might be tempting to buy them with a credit card or make a hasty purchase without shopping around first.
The name of the game in getting financing for a home is preparing well in advance for each step. Don't rush into the process, and you'll be sure to get the home of your dreams, or that Apartment for rent in Liberty Village before you know it.
The name of the game in getting financing for a home is preparing well in advance for each step. Don't rush into the process, and you'll be sure to get the home of your dreams, or that Apartment for rent in Liberty Village before you know it.
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