The journey towards buying your first house can be filled with excitement, anticipation, and even a bit of anxiety. For most, investing in a home loan is one of the largest financial moves they will initiate. To make the process go much smoother, there are a few steps buyers can take to avoid surprises and pitfalls.
What to Do Before Buying a First Home
1. Determine Affordability
You want a home, but you don't want mortgage payments that will bust your monthly budget. Ideally, your monthly obligation should not be more than 25% of your income. This way, there is enough room to pay other bills such as car and student loans.
2. Get Pre-Approved
Closely tied to affordability is getting pre-approved for a home loan. After submitting your personal finances such as debt, monthly bills and income, a lender can calculate how much of a mortgage you're eligible for. Armed with this important figure, you will be able to shop for houses within a certain price range.
3. Consider Different Loan Options
There are many home loan programs designed to accommodate a wide range of financing needs. For instance, certain government entities offer options for first-time buyers that don’t require a down payment. Other programs provide incentives to teachers, firefighters, and other service occupations. An experienced residential mortgage loan officer can help you determine which ones you may be eligible for.
Buying a first home doesn’t have to be an overwhelming task. With a bit of homework and help from a professional lender, you can get the house of your dreams. Let the home loan specialists at Movement Mortgage in North Haven, CT, help you get there. The team always takes a customized approach that complements each client’s mortgage needs and delivers results. To get started, call (203) 215-5133 to meet with one of the firm’s friendly staffers. Visit the website to learn more about the entire lending process.