Tips on buying your first home.
Buying your first home is not something you (or anyone) should take lightly. You should be prepared with as much information about the process as you can learn before you begin. You should understand your real estate market and the current mortgage market. The more you know-the better.
There are do's and don'ts in this process.
Here are some of the things you should do to be prepared to buy your first home.
Figure out your total monthly budget then find out what your total monthly housing costs would be. Make sure you include taxes and insurance as that will be included in your monthly payment. Fannie Mae recommends no more than 28% of income on housing. You should also find out how much you will likely pay in closing costs. Closing costs include: Origination fees charge by the lender, title and settlement fees, taxes and prepaid items like homeowners insurance or homeowners association fees. Our lender should be able to give you a good idea on these costs.
Examine your free annual credit report and comb through it for errors and unresolved issues. If there are errors contact the credit bureau to get them corrected Get all your documents in a row. Collect pay stubs, bank account statements, W-2s, tax returns for the last two years. Don't be surprised if your lender needs a lot of documentation.