you're thinking of purchasing your first home, you probably have a lot
of great ideas about what you'd like, but sometimes you need a balance
between your "wish list" items and practical realities of the property,
location, housing market, and financial reality of what you can afford.
So take some time for a reality
The best way
to deal with this reality is to match your financial capabilities with
the home that meets as many of your needs as possible.Many first-time
buyers purchase what is commonly known as a "starter home" and there is nothing wrong with this approach. Before
you know it, you'll have a place to call your very own, a place to
entertain, a place to decorate, a place to raise a family. The starter
home is a great start, and a great way to get started in your long-term real
estate investment. It really is an exciting time!
To help keep you on track, below is information you need to know before you decide to buy your first home.
To see how
much you can afford, use all information and resources provided for you
on our web site. Remember to take a close look at your financial
The vast majority of home buyers lack the funds required to buy a home
without assistance from a bank or other financial institution (commonly
called a "lender"). So, for most buyers, buying a first home means
savings with money borrowed through a special type of borrowing
called a "mortgage."
Start with a budget. An effective budget will help you to map out plan
to set aside money for your down payment and additional costs involved.
It will also help determine the price of home you can afford.
purchase is a great way to start. There are many different types of mortgages available. Even people buying
of dollars' worth of property borrow to make the purchase. If
you don't have the 20% down payment for a conventional mortgage, you
can get a high ratio mortgage, combined with mortgage default
insurance, that allows for a smaller down payment.
several factors in judging your ability to handle a mortgage, including
your income, employment record and credit worthiness. However,
way you can estimate the price range you can afford is to look at the
of money you have available for a down payment.
assess your ability to buy, they look at your ability to pay both types
of costs in determining how much money they will lend you. Before
you ever visit a lender, you can predetermine this amount, using the
same formulas they do.
It is good idea to be pre-approved for a mortgage before you start house hunting.
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There are two
types of costs in buying a home:
for Initial Purchase & Closing Costs - This is the amount
of money you'll need for the initial purchase, which consists mainly of
the down payment and other costs such as legal fees, taxes, and related
costs prior to the closing day.
- The Ongoing Costs - The ongoing
costs of paying back your mortgage (principal and interest), along with monthly operating costs
for utilities, maintenance, insurance and annual property taxes.
exactly what you can afford, you can make your home purchase with confidence.