5 Important Things To Keep In Mind Before Purchasing Your First Home

Buying your first home can be both exciting and terrifying all at the same time! Unlike with renting, buying a home can open up tons of opportunities. You’ll be able to decorate how you wish, but at the same time you’ll also be the one responsible for all home repairs.

If you think you’re ready to take on home buying, here are 5 important things you’ll want to keep in mind before purchasing your first home:

1. Figure Out How Much Home You Can Afford

Figuring out how much home you can afford should always, always, be the first step. As a rule of thumb, your monthly housing payment shouldn’t be more than 28 percent of your gross monthly income. An online mortgage calculator, such as the one offered by Capital One, will help you figure out what you can afford.

2. Check On Your Financial History

Your financial history is VERY important when it comes to getting a mortgage. Lenders look at income, assets, job history, credit score, total debt, and how much you’re willing to put down as a down payment. You’ll want to find out where you stand and fix anything if need be,

3. Start Saving For a Down Payment

A typical down payment is 20 percent of the purchase price of the home. Once you’ve completed step 1 and have figured out how much of a home you can afford, figuring out how much you’ll need for a down payment will be a cinch!

4. Research Closing Costs

When buying a home you’ll also be responsible for closing costs. Closing costs can add to the amount you need to close your loan and take possession of your new home. Closing costs vary from one lender to another so make sure to look them over very carefully.

5. Figure Out The Type Of Mortgage That Will Work Best For You

Mortgages come in all shapes and sizes, and which one you choose depends on a lot of variables, including your budget, the amount you can afford to put down, the interest you’ll pay and the term length. All mortgages have pros and cons, but starting with at least a top-line understanding of what’s available is important as you save for this major purchase.

Still feel a little lost? The Capital One Home Loans Online Neighborhood is a free online resource where you can learn all about home buying. They’ve gathered easy-to-understand articles and helpful videos, as well as information about Capital One’s Home Loans offerings. Their friendly online neighborhood covers all stages of the home buying process – from deciding whether now is even the right time to buy and how much home you can afford, to the documents you need to apply for a mortgage.

If you’re interested in learning more about Capital One Home Loans and how we they can help you get home, visit them here.

I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.