Unless you’re a total math whiz, purchasing a home as a first-time homebuyer is no party.
On one hand, designing a home and starting a new life can be a fun and exhilarating experience. On the other hand, there are finances and loans to figure out and getting there can take some time and patience.
To help guide you through the purchasing process, we’ve put together this homebuying checklist for the first-time homebuyer. Take a look, print it out and check off items along the way. With this map by your side, there’s no way you can get lost.
Step 1: Determine How Much You Can Spend
Before you get started anywhere else, you should first get an idea about how much you can spend on your new home. After all, you don’t want to find the home of your dreams only to be disheartened when you find that it’s lightyears over your budget.
To determine how much you can spend, identify the source of money you’ll be using to pay for your home — down payment, interest, mortgage and all. Will you be drawing into your savings, investments or gift money from mom and dad?
Now’s also a great time to request your credit report, as this plays a huge role in how much loan you can receive.
Next, take a moment to gather your monthly expenses and sources of income. A quick analysis of your total finances can help you get an idea of where you stand on monthly payments toward your home.