Tips on Buying Your First Home
We all know it, buying your first home is one of the biggest decisions that you will ever make in your life. A lot of us fake our way through the process and follow the realtor's lead. The process can become a real headscratcher in certain cases. So we wanted to give you tips on the process of buying your first home!
The first step is to figure out what you can afford.
Think about your DTI (Debt to Income Ratio). It’s the amount of debt you have like credit card payments, student loans, auto loans, etc. compared to your overall income. This ratio allows mortgage lenders to evaluate how much additional debt you can handle. It helps them decide whether or not to give you the home loan. A general rule is to have your DTI should below 36%. To figure that out you can use DTI calculators with a quick google search plenty of finical sites do it.
Learn how to build your credit.
Your credit score helps determine the interest rate and other costs you pay on a mortgage loan. It tells lenders if you paid your bills on time, maxed out cards, and so on. So when in the process of home buying make sure to pay your bills on time. Work on decreasing your outstanding debt and keep the existing debt in check.
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