Sorting through all the difficult parts of the home buying process and asking yourself serious questions like: What mortgage can I afford? is really only the beginning of a thorough first time home buyer checklist that will get you in the front door with a minimum of hassle.
Still, it is important you go through all the steps and make sure you have all the information to make this important purchase in a reasonable manner. While looking for homes and sorting through all the listings in different neighborhoods is the fun part, you will want to talk to a few realtors to find out which neighborhoods are likely to rise in price and which might be forgotten in a backwash of new developments.
Mortgage from the bank
Taking a look at your budget before you sign on any dotted line and get the key to a new house is a critical step. Just because you can afford the mortgage the bank approves you for doesn’t mean you can afford to spend that much money on a monthly basis. Beyond all the extra costs you need to factor in like utilities and property taxes, there are unexpected issues that arise in the maintenance and repair areas.
Money on a mortgage
There is a good rule of thumb many experts use to determine how much money you should actually be spending on the mortgage. Some experts recommend that you spend no more than 28% of your total household income on this aspect of your financial picture . These same experts suggest that hitting the 30% mark will make you house poor. The most efficient first time home buyer checklist needs to include several angles.
