What do first-time home buyers need to know before they purchase a home?
First-time home buyers need to understand the importance of the following aspects and work to achieve these goals before they purchase. • One must save properly for a down payment and closing costs. A first-time home buyer should have from 3 percent to 5 percent for a down payment. • Pay all outside debts on time. • Work to eliminate excessive debts. • Strive to maintain a good credit score. • Understand your limits. You must know your affordability. Can you afford your dream house? There is a rule of thumb that real estate professionals use that says you can afford a house that costs up to two and half times your annual gross income. For example, if your annual gross income is $75,000, you can afford to buy a home at no more than $187,500. You could purchase more depending on your outstanding debt. How can someone determine if buying a home is the right decision? Buyers must realize there are advantages and disadvantages to buying. Advantages to ownership: • Fulfilling the American dr
