Table of Contents
Buying your first home is exciting but daunting. Avoid expensive rookie mistakes with this essential checklist for first-time buyers.
Key Takeaways
Essential advice for navigating the complex process of buying your first home.
- Preparation is Key
- Don't Become House Poor
- Frequently Asked Questions
- Conclusion
- Related Calculators
Preparation is Key
Check your credit score early. Save for a down payment AND closing costs (which can be 2-5% of the purchase price). Get pre-approved, not just pre-qualified, before looking at houses.
Don't Become House Poor
Lenders will qualify you for the maximum amount you can borrow, not what you can afford. Stick to a budget where your total housing payment is under 28-30% of your gross income.
Frequently Asked Questions
What is the difference between fixed and variable rates?
Fixed rates stay the same; variable rates can change with the market.
How much down payment do I need?
Typically 20% to avoid PMI, but some loans allow as low as 3-3.5%.
Should I pay off my mortgage early?
It depends on your interest rate versus potential investment returns.
Conclusion
Trust your inspection report. Be willing to walk away. A home is a long-term commitment; buy one that blesses your finances rather than stressing them.