First time home buyers face many challenges. Not only do they have to become acquainted with the many in and outs of the real estate game, but they also have to find the house that they love.
First time home buyers, often find out that the things which they may want in a house are not necessarily the things that they can afford. The initial step when in the market for you first home is to determine what you can afford. Most of the time, buyers do not have all of the money that they need for a home purchase saved up.
As such the majority have to seek a loan in the form of a mortgage to make their home ownership dreams a reality.
When seeking a mortgage it is essential to seek out one with the lowest interest rate as it will determine how much you will have to pay pack over your initial loan, which over a long amortization period can certainly add up. Depending on said interest rates, the potential home owner should determine what first time buyer mortgages would best suit their needs. The amount of the mortgage that you qualify for can vary based on your income and outstanding debts, such as a car loan, as well as the amount of downpayment that you have to place down on your house. A down payment of 20% is often considered sizable, but often with as little as 5% downpayment you can qualify for a mortgage.
As important as finances are, don't let the stress prevent you from having fun shopping for your first home.