Buying your first home is one of the most exciting times in your life. It is also one of the biggest financial decisions you will ever make, which is why it is important to know what you are getting into. Make sure to ask yourself these 3 first-time homebuyer questions when looking for a home.
- What can you afford? It is important to keep in mind that the cost of a home is much more than just the mortgage payment. Make sure to factor in utility bills and maintenance costs.
- What is your debt to income ratio? Your lender will want to know what your debt to income ratio is when you are applying for a loan. Make sure that your overall debt is never more than 40 percent, and your housing debt is never more than 32 percent.
- What do you need and want?