Here's what you should know!
A home is the biggest purchase most people will ever make in their lifetimes, often matched by a lengthy loan commitment of up to 30 years. The type of loan you get, distinguished mainly by its interest rate, will depend primarily on your credit score, debt-to-income ratio, and the amount of cash you have on hand for a down payment. Your ability to purchase a home will largely depend on the following:
Work History: Be ready to explain fluctuations in income and gaps in your employment history.
Credit History: This includes the timeliness of paying bills, whether you have any loan defaults, and whether you carry large balances on your credit cards.
Money Saved: How much have you saved, and are you continuing to save money? Down payments are usually at least 5 percent of the home’s price.
Loan Prequalification: Getting prequalified for a loan is a great way to determine exactly how much you can afford before you start looking at available real estate.
In addition to the initial costs and monthly mortgage payments, home ownership also has substantial long-term costs, such as maintenance, upkeep, insurance, property taxes, and other associated costs. Make sure you budget enough for both predictable maintenance costs and unexpected emergencies.