How interesting! You’re about to get so deep in debt that it could take you 30 years to get out of it, kidding (more or less). You’ve probably heard that real estate is a great investment. And it totally is! But, in some cases, buying a home can be a nightmare in disguise. You never really feel like you’re ready to buy your first home, or you may not even know what buying a home really entails.

Whatever the case, we’re here to provide you with detailed information on what you need to know before buying your first home. If you check all of these boxes, your first home purchase will be easy!

GETTING APPROVED IS MORE THAN JUST YOUR INCOME

Before you even start thinking about buying a home, you need to make sure you’re approved. A family”knew“The amount they wanted to spend on a home and what they could afford. But they didn’t realize the approval process was more than what they wanted to spend!

There are multiple different factors that go into a pre-approval process. The main ones are:

Income:

Based on your income, they will calculate how much you can afford. The higher the income, the larger the loan. That does not mean that if you have a low income you will not be approved for a loan.

Time of the work:

Typically, you must currently be in the same job for 2 years or more. This is not the time to change jobs or try to figure out your career path. They want to see consistency. We’re not saying you can’t get a loan, because it can be done. You’ll just have to jump through a lot more hoops if you’ve recently changed jobs in the last 2 years.

Credit Score:

Using your credit score, they can find out how”loanable“You are. Just make your payments, people. If you don’t make your payments, they’re not going to lend you the money.

THERE ARE MORE EXPENSES THAN A MORTGAGE PAYMENT

You got your pre-approval back and you’re pleasantly surprised that you got approved for more than you thought. This is where homebuyers make the ONE biggest mistake. Buy a house to the maximum for which they were approved.

If you can take anything from this post, we want it to be this: DO NOT buy a house for the maximum amount you are approved for. There’s a reason it’s your maximum amount.

If you’re barely making ends meet just making your mortgage payment, what happens when something unexpected comes up, like job loss or medical bills (and yes, it CAN happen to you)? Something always comes up and you definitely don’t want to be struggling to pay your mortgage.

ADDITIONAL COST

You should not only consider the PMI, but also the closing costs. You will spend between 2% and 5% of the price of the house in closing costs. If you’re completely comfortable and confident that you can afford your closing costs and make a decent down payment (preferably 20%), then you’re pretty safe. There’s no point in paying more than you owe just because you don’t want to take an extra year or two to save.

HAVING AN EMERGENCY FUND MAKES IT OR DESTROYS IT

We know that you think that nothing will happen to you and that life will always be fine and elegant. But we hate to tell you that you are wrong. We just want you to be prepared and smart. Typically, you should save 1% of your home costs for ongoing maintenance each year.

IT IS NOT WORTH IT IF YOU ARE LESS THAN 5 YEARS OLD

It has been proven that you need to be in a hOhme for 5 years to start covering expenses.

Those first 5 years is basically just paying the interest. At that time you have not made a tooth to your principal. Now you would have to either try to resell at the purchase price you bought for or to get your money back, try selling for higher. Doesn’t that sound like a nuisance?!

There is so much upfront cost that it’s not even worth it if you don’t plan on staying that long. In this case, renting may be a better option.

YES, THERE IS A MARKET OF SELLERS AND BUYERS

The market you are in can greatly affect your buying power. Builders can sell their houses for a ridiculously high price and have them taken away in a matter of days.

In a buyer’s market you have much more leeway. You have the power of decision to find a home you really love (and not just choose one because you can’t find anything else). You also have the opportunity to get in even BELOW the sale price. If you know you’re in a seller’s market and you’re afraid you’ll pay too much for a home, it doesn’t hurt to wait.

YOUR INTESTINE KNOWS MORE THAN YOU

Gut feelings go a long way. Your instinct is much smarter than you think, and you should listen to it. Do you feel ready to buy your first home? Is it something that is truly in the best interest of your family or do you just want a home because everyone else is doing it?

You may never feel completely confident about buying a home (and that’s completely normal), but make sure you’re prepared. Buying your first home can really be a great experience and an even better long-term investment.

Regardless of what you choose, we hope these tips help you make your decision and become a little more informed about what buying your first home really entails.

For more information, visit the Mantri developer website