Purchasing a home for the first time can be an overwhelming task for the beginner homebuyer, but with the right approach it can be much simpler than you might think. You should start off by asking yourself two questions:
1. What can I afford?
2. Should I buy now or wait?
If you’re buying cash, it’s easier to set. If you’re financing, you are going to have to talk to either a mortgage lender or a mortgage broker. A lender or broker can let you know whether you can buy now or whether you should wait.
Can you buy now?
- Minimum 580 Credit Score
- W2 Employee of Self Employed
- Minimum of two years of 2 work history
- Down Payment
- Need DPA?
- What us your debt-to-income ratio?
If you have to wait, they could help you come up with a game plan for how to become ready to buy in the near future. If you can buy now, then they’re going to recommend a loan program based on what’s best for you.
If you’re approved, you have the money on hand that you need, and you’re okay with a quote for the mortgage payment, make sure you ask your real estate professional these questions:
- What are the local market trends?
- Is this community a bubble market?
- What’s the rental market like?
Keep in mind that it’s best to consult with a professional before making any decisions.