Reminders for First-Time Homebuyers

First-time homebuyers should not only think about mortgage qualification and preparation as mostly financial in nature – they should look at their prospective house choices from all angles.

Take note of the following reminders when it comes to mortgage qualification and preparation:

Compare the mortgage with your expenses. Sum up all your expenses, and in place of your current rent (if you are renting) or mortgage, put in the new mortgage that you will be taking on. That way, you can find out how much will be left to you after all is said and done. And if you’ve already finished paying your mortgage off on the house you’re living in, or if you’re essentially living rent-free, then this would be the best time to see if your savings can handle the cost of a monthly mortgage payment. Include in your calculations all fees, taxes and expenses related to just closing the deal for the new house – that’s part of the cost of getting a new house, after all.

Make sure you’re qualified. As always, make sure that your bank can back you up on what you can really afford. Find out what you really qualify for, rather than just assume that you have this figure in your mind. Ask your real estate agent and your bank for the exact figures.

Keep an open mind. Sometimes, all a house will need is a few repairs or low-cost changes, and it will become the near-perfect house for you. Don’t dismiss a house just because the wallpaper is horrible, or because it has a few leaks that can easily be fixed.

Keep firm on what you need. On the other hand, you should also have a set of non-negotiables. For example, you shouldn’t go below two bedrooms if you are planning to have a child in the near future. And if the house will need major repairs or restructuring just to get what you want, then you’re better off looking somewhere else – unless all of the repairs or restructuring can be justified by something like an easy commute or a very good neighborhood.

Sign up on the box at the right to get more information on mortgage qualification and preparation, particularly if you are a first-time homebuyer.