First-Time Home Buyers

Are you thinking about buying a home? It is an exciting time & scary also. Here are some things to think about before you take the leap and start looking at houses.

How is your credit score? Do you have many outstanding debts? It is highly recommended you get those in order. If you have no debts, that's great. But you also need credit. How do you get credit? Start by getting a credit card or a small personal loan. Use it, but pay it back immediately, and never be late. It can take some time to build your credit, but it is important. Always pay your cell phone bill on time, etc., because they help build your credit, too. Talk to your banker, and they can help you do what is best for your situation.

Your bank. Some banks specialize in mortgages. Some banks will not give loans for mini homes, but some do. It is best to do your homework first, as I'd hate to see you disappointed, finding a home, but your bank will not be able to help you.

Mortgage calculators. Your bank will likely have one on its website. Here is a general one that you can try. Remember, this does not mean you have approval for this. And it seems like maybe you can afford more. But with owning a home, comes many other expenses: home maintenance, insurance, snow and lawn care, tools you may need for this, extra travel for work, higher heating bills & unexpected repairs and maintenance, water and sewer bills, etc.

https://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

Down Payment. Typically, your first home under $500K needs a 5% down payment. Your lending company will let you know how much you need.