How interesting! You’re about to be in so much debt that it could take 30 years to get out of it, kidding (sort of). You’ve probably heard that real estate is a great investment. And it totally is! But, in some cases, buying a home can be a nightmare in disguise. You never really feel like you’re ready to buy your first home, or you may not even know what buying a home really entails.

Whatever the case, we’re here to give you the lowdown on what you need to know before you buy your first home. If you check all these boxes, your first home purchase will be easy!

GETTING APPROVED IS MORE THAN JUST YOUR INCOME

Before you even start thinking about buying a home, you need to make sure it’s approved. A family”he knew“How much they wanted to spend on a house and what they could afford. But they didn’t realize there was more to the approval process than what they wanted to spend!

There are multiple different factors that go into a pre-approval process. The main ones are:

Entry:

Based on your income, they will calculate how much you can afford. The higher the income, the larger the loan. That doesn’t mean that if you have low income you won’t be approved for a loan.

Time of the work:

Generally, you must currently be in the same job for 2 years or more. This is not the time to change jobs or try to figure out your career path. They want to see consistency. We’re not saying you can’t get a loan, because you can. You will only have to jump through a lot more hoops if you recently changed jobs in the last 2 years.

Credit Score:

Using your credit score, they can figure out how”loan worthy“You are. Just make your payments, people. If you don’t make your payments, they’re not going to lend you the money.

THERE ARE MORE EXPENSES THAN A MORTGAGE PAYMENT

He got his previous approval back and is pleasantly surprised that he got approved for more than he thought. This is where homebuyers make the ONE biggest mistake. Buy a house to the maximum for which they were approved.

If you can get something out of this post, we want it to be this: DO NOT buy a home for the maximum amount you are approved for. There is a reason that is your maximum amount.

If you’re barely making ends meet just making your mortgage payment, what happens when some unexpected expense comes up, like job loss or medical bills (and yes, it CAN happen to you)? There is always something that comes up and you definitely don’t want to be struggling to pay your mortgage.

ADDITIONAL COST

You should not only consider the PMI, but also the closing costs. You will spend between 2% and 5% of the price of the home on closing costs. If you feel completely comfortable and confident that you can afford the closing costs and make a decent down payment (preferably 20%), then you’re pretty safe. There is no point in paying more than you owe just because you don’t want to take another year or two to save.

HAVING AN EMERGENCY FUND MAKES IT OR DESTROYS IT

We know that you think that nothing is going to happen to you and that life will always be fine and elegant. But we hate to tell you that you’re wrong. We just want you to be prepared and smart. You typically need to save 1% of your home costs for ongoing maintenance each year.

NOT WORTH IT IF YOU ARE LESS THAN 5 YEARS OLD

It has been proven that you need to be in a Hohme for 5 years to start covering expenses.

Those first 5 years is basically just paying the interest. At that time you have not done a tooth to your principal. Now you would have to try to resell at the purchase price you bought for or to get your money back, try to sell for higher. Doesn’t that sound like a hassle?!

There’s so much upfront cost that it’s not even worth it if you don’t plan on staying that long. In this case, renting may be a better option.

YES, THERE IS A MARKET OF SELLERS AND BUYERS

The market you are in can greatly affect your purchasing power. Builders can sell their homes for a ridiculously high price and have them taken away in a matter of days.

In a buyer’s market you have a lot more wiggle room. You have the power to find a home you really love (and not just pick one because you can’t find anything else). You also have the opportunity to enter even BELOW the sale price. If you know you’re in a seller’s market and you’re afraid of paying too much for a home, it can’t hurt to wait.

YOUR INTESTINE KNOWS MORE THAN YOU

Gut feelings go a long way. Your instinct is much smarter than you think, and you should listen to it. Do you feel ready to buy your first home? Is it something that is really in your family’s best interest or do you just want a home because everyone else is doing it?

You may never feel totally confident about buying a home (and that’s completely normal), but make sure you’re prepared. Buying your first home can really be a great experience and an even better long-term investment.

Regardless of what you choose, we hope these tips will help you make a decision and be a little more informed about what buying your first home really entails.

For more information visit the Mantri Developers website