Buying your first house can seem like an unattainable dream at times, but every once in a while you hear a story of a couple who were able to save enough money for a down payment. It gives makes you think that, someday, that could be you. However, there is more to buying a house than saving up for a down payment. Read the guidelines below to determine whether you really can afford to buy a house at this time.

Do you earn enough?

If you’re struggling to set aside some money while paying the bills and the rent, chances are you will have a difficult time keeping up with mortgage repayments. You also have to consider the property tax in the area, home insurance, and the fact that you will be responsible for home repairs. This is the step that traps most prospective home buyers.

But don’t give up because you can’t afford a house just yet. Use the time you have to get on top of your financial situation; pay off as much debt as you can and boost your credit wherever possible. This will help your chances of getting a good mortgage.

What kind of financial help can you get?

Once you’ve managed to save some money, you need to find out how much a lender will be willing to give you to buy your first home. A mortgage lender will look at your income, how much debt you have, and how long you’ve been at your current job. All your debt payments plus your new housing expenses – mortgage, homeowners association fees, property tax, homeowner’s insurance, etc. – shouldn’t equal more than 43% of your monthly gross income, according to the federal housing administration (FHA). Based on your calculations, you may have to adjust your expectations on what kind of house you can afford.

Fortunately, there are a lot of other options available for first-time buyers who don’t have a 20% down payment. Your state may have its own programs for first-time home buyers. Your mortgage interest rate will also have a major impact on the total price you pay for your home, so shopping around will pay off.

The buying process

Buying a house isn’t limited to looking for homes for sale on real estate websites. Put out some feelers with friends and family, or look at rental ads and see if the owners are open to selling. This may not be an accepted method, but it will save you from going up against experienced buyers.

Squeeze them for information

Don’t be taken in by what may appear to be a dream house. One of the best kept secrets about buying a home is that your real estate agent has to be honest with you, but only if you ask questions directly. No question is too silly; how many viewings have they had? Why do the homeowners want to sell? Who lives upstairs/next door? You’re hoping to live here, so avoid any unpleasant surprises by finding out everything you can.

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Buying a home for the first time will always be very scary. What if you don’t like the house? What if you chose the wrong location for your house? What if the additional monthly expense of buying a house makes it much more difficult for you to make both ends meet? These are just some of the concerns that make home buying difficult for first-time buyers.

Choosing the Location

Choosing the best location is, of course, one of the most important factors that you have to consider. For those with children, it’s best that you choose an area that has schools. Just see to it though that these schools have good rating.

Aside from schools, it will also be advantageous for you if you choose homes that are near parks and playgrounds. This’ll give your children a good place where they can have some fun and, at the same time, get a little bit of exercise.

For working parents, it will also be very advantageous for you if you purchase a home near your workplace. This will save you from a lot of time commuting to and from work, and this will also give you more time with your family.

Choose What You Can Afford

It’s a new house, so, yes, you would definitely want it to be your dream home. However, you should know that your budget will limit the way you want your home to be. You have monthly expenses to think of, savings to put in the bank, and a fund to set aside for emergency purposes. These expenses can limit your house options.

To make it easy for you, you need to have your credit history checked and preapproved. Preapproval will give you a good idea of what you can and can’t afford, and checking your credit history will also show you if you have problems with it. If there are problems or discrepancies with your credit history, you need have the issues resolved as soon as possible so there won’t be any problems when you do get a housing loan. Knowing your credit history and getting preapproved, taking into consideration all your monthly expenses, will help you find a way for the housing loan to fit into your budget.

You can also make use of a mortgage calculator so you can find out just how much your monthly payment will be and how much it will make an impact on your monthly income and budget.

Of note; it’s tempting to purchase your dream house, but if this is going to be a nightmare on your finances, then settle for something that you can afford. You don’t want to commit to something that you can’t afford to pay. You’re only going to end up with more problems if you do so.

Choose a Good Company

Choosing a good lending company and good home builder is also key to buying your new house. For this reason, always take a look at the reputation of the companies before choosing one. Compare the services and offers of the different company, and always check and see if they are licensed and registered to offer their services. It will also do you a lot of good to check their testimonials and see how they work with their clients.

Jennifer Dalley is a freelance content provider who writes for home builders. Through this article, she hopes to help first-time buyers purchase their own homes.

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