Here are 5 questions first-time homebuyers should ask
The good news is, you don’t have to be a professional to make a good home purchase decision. You just need to be patient and do your research.
Before you start your home search, make sure you have a good understanding of what you can afford and what type of property do you want. Here are five questions every first-time buyer should ask themselves: themselves:
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1. Am I making enough money to afford a house?
Many advisers recommend that buyers use the 28/36 rule to determine whether or not they can afford a house. Simply put, your mortgage should be 28% or less of your annual income. And all of your debt repayments should be less than 36% of your annual income.
That said, average home prices vary all over the world. So, the annual income you will need to afford a home in Phoenix, Arizona will be different from what you would need in New York, New York.
2. What type of down payment do I need as a first-time buyer?
One of the most difficult parts for first-time homebuyers is save enough for the down payment. But luckily, potential buyers not have put 20% off in order to be approved for a loan. Some loans require 10% down payment, while others require even less.
Before buying a house, check what type of loan you would be approved. For example, if you have a high credit score (at least 580), you might be approved for an FHA loan and only have to pay 10% on your home.
3. Is my credit rating high enough?
The credit rating you need to buy a home varies depending on the mortgage you apply for. But one thing is certain, as a first-time buyer you want your credit score for getting in shape. The lower your credit score, the harder it will be to qualify for a loan with a reasonable down payment.
4. What type of property is suitable for a first-time buyer?
Buying your first home is a big commitment. Along with considering all of the many costs associated with owning a home, you also need to consider what type of property is right for you and your family.
For example, condominiums require less maintenance than houses. But with so many condo association rules, you might not be able to customize your home as much as you would like. While you can customize anything you want with a single family home, you will be responsible for all maintenance and repairs, which can easily add up.
Before you start your home search, search the many types of properties and the costs associated with all. Choose an option that matches your finances, so that you are
5. How long does it usually take to buy a house?
There is no denying that the process of buying a home can be a long one. In addition to the time spent finding your dream home, you need to find a real estate agent, get approved for a loan, make an offer, get a home inspection, evaluation, etc.
The time it takes for each step of the home buying process varies. But generally, once the contract is signed, it can take between 30 to 45 days to close.