If you’re done with rentals and want to own your home, here are a few tips that you should follow before you buy your first home.
Compare homes in your area – To find out how much you need to pay, look at the houses listed in your area. Then calculate how much you have saved and how much of a mortgage you will need to take. Most bank websites will include a mortgage calculator help you get an idea of your monthly payments.
Your total monthly housing cost – Understand what your taxes and home insurance will cost before you consider a mortgage. To understand how much home insurance, you will pay, look at a property that you like in your area and call an insurance agent for an estimate.
Closing costs – Closing costs will include origination fees, title and settlement fees, and taxes. To understand your closing costs, look at the annual closing costs survey offered by many bank websites which is specific to your area.
Look at your budget – Look at spending no more than 28% on your income for your mortgage. Increasing that percentage will only make it difficult to live, save and to do things you love.
Talk to reputable realtors – Speak to reputed relators that you trust, to offer you a few home options that are within your price range.
Look at the big picture – Remember that buying a home also means that you will have to fix all repairs, which can be expensive and time-consuming. Therefore, make sure you put some money away for home maintenance and repairs.