Tips for Buying Your First Home

There’s no better time than National Homeownership Month to buy your first home, so let’s make sure you’re ready! 

Buying a home can be challenging for a first-timer, especially in this market. There are so many tasks and requirements that might make you anxious to take the first step. So, we’ve compiled a list of everything you need to know to make that first big purchase easier.

Here is a rundown of what you need to consider before buying.

Things to Consider Before Buying

Your Financial Health - You need to be prepared for both the purchase and the ongoing expenses of a home. The outcome of this audit will tell you whether you're ready to take this big step, or if you need to do more to prepare.

How Much You Have Saved - You’ll want at least three to six months of living expenses after your down-payment still in your savings account. There will be considerable upfront costs including the down payment and closing costs. You need money put away not only for those costs but also for your emergency fund. Lenders will require it.

Your Spending Habits - You need to know exactly how much you're spending every month—and where it's going. This calculation will tell you how much you can allocate to a mortgage payment.

Your Credit - Generally, to qualify for a home loan, you'll need good credit, a history of paying your bills on time, and a maximum debt-to-income ratio of 43%.

What Type of Home You Need/Want - You have a number of options when purchasing a residential property: a traditional single-family home, a duplex, a townhouse, a condo, a co-operative, or a multi-family building with two to four units. Each option has its pros and cons, depending on your homeownership goals, so you need to decide which type of property will help you reach those goals.

How Much Mortgage You Qualify for - Before you start shopping, it's important to get an idea of how much a lender will give you to purchase your first home. Lenders will look at factors like how much other debt you have, your monthly income, and how long you've been at your current job.

What Realtor You’re Going to Work With - Who you work with is super important when buying a home which is why we, Bob Lucido Team, Lucido Global, and Lucido Agency, make it our mission to deliver the Ultimate Real Estate Experience™ by providing incredible value and exceptional service. You need a team you can trust. When you buy or sell with us you don’t get just one agent, you get an entire team of real estate professionals working to serve and guide you through every step of the process.