Buying your first home?
Questions to Consider
Are you ready to purchase a home?
Home ownership not only means you can decorate your house how you want it to look, but it also means maintaining and repairing your home while you own it. On top of monthly payments, you’ll also need to take care of your lawn, maintain appliances, repaint the exterior of your home, and more. But with these added responsibilities comes a rewarding experience!
What can you afford?
It’s important to have a realistic idea of what sort of home you can afford. Most often this means what you can afford to pay on a monthly basis. Having a big monthly mortgage payment may get you a bigger house, but sacrificing most of your monthly income can quickly dampen the joy of your new home. It’s much better to buy a simpler home now and save up for your future “dream home”.
What’s your debt-to-income ratio?
Your debt-to-income ratio is something that all lenders seriously consider when deciding on giving you a loan. The exact percentage may differ depending on the lender, but there are a couple of percentages to aim for:
- Front-end ratio (AKA your “housing ratio”): This is your housing payment. It shouldn’t be more than 30% of your income before taxes (gross income).
- Back-end Ratio: This shouldn’t be more than 38%. It includes your car loan, student loans, credit cards, and housing payments.
Your debt-to-income ratio could determine where you can afford to live. For example, $250,000 can buy a lot more house in a rural area than a more urban area.
What are your wants vs. needs?
Do you want to take care of your lawn or would you rather hire someone else to do it? Would you like to live in a community with rules about garbage cans, recreational vehicle visibility, paint colors, etc., or would you rather be able to do what you like on your property?
Knowing your answers to questions like these will help you narrow down your search for the perfect home for you and your family.
When you're ready to buy, we'll be here to serve you.
Our team is here to serve you and help you accomplish your goals. We’ll help keep you focused on what you’re looking for and what you can afford from start to finish.
You need a fantastic agent who will work hard for you. Our team is dedicated to helping you find the right home at the best price. We want you to find the home that will make you and your family happy and safe. When you hire us to help you buy your first home, we want to know what you want and what you can afford. Then we’ll find you the best home that meets these goals that you’ll enjoy owning!
You need to work with the right lender. Using a great lender is crucial in the home buying process. The right lender will work with you to find the right loan program for your budget and needs. The right lender will help guide you through the mortgage process through communication and education. If you don’t already have a lender, we highly recommend working with our lender partner, Lisa Meyer.