When considering whether or not to buy a house, you likely have many questions. For first-time purchasers, the process might seem overwhelming. However, with proper research and preparation, you can move through the search and sale easily. To help you make a decision, below are answers to some of the most common questions about the process.

An Introduction to Buying Your First House

What should I plan to spend?

The first step in narrowing down your search is determining how much you can afford on your monthly mortgage payment. On average, the mortgage payments shouldn’t cost more than 25% of your monthly income. This ensure that you have enough money available to pay for other bills that come with the home, such as homeowners insurance, utility expenses, and possible homeowners association fees.

What will I need to spend on a down payment?

The amount of your down payment will depend on the type of mortgage you get. For example, if you opt for a traditional 15- or 20-year fixed rate loan, expect to put down a minimum of 20% of the home’s price.

However, the first time you buy a house, you can apply for a Federal Housing Administration (FHA) loan. In this case, you can pay as little as 3.5%, although you should consider putting down more if possible; this will help keep your monthly payments and interest rate low.

Do I need preapproval before I start shopping?

No, but it is beneficial to do so. When you get mortgage preapproval, a lender determines what kind of loan you qualify for by evaluating your credit score and history. This helps to narrow down the types of homes you can buy. By knowing this, you won’t waste time looking to buy a house that’s out of your budget. Preapproval also makes your offer more attractive to sellers once you’re ready to move forward, as it shows you’re a reliable buyer.

Should I invest in a home inspection?

Absolutely. A home inspection provides insight into the condition of the property, which could aid in your decision to proceed with an offer. For example, if you find out a potential property has a damaged foundation, you might decide to walk away from the sale, or you might have room to negotiate for a lower price.

If you’re ready to buy a house for the first time, contact Move Realty in Cottleville, MO. These knowledgeable professionals know the markets throughout St. Louis, St. Charles, and Lincoln counties, and will work with you to find the property of your dreams. Visit the website for more information about their services. Call (636) 233-8334 to schedule a consultation.