If you are a first time home buyer, it can be quite intimidating to buy a house. According to a recent survey, most first time buyers are looking for a house priced $150,00 or less. That kind of amount could make many aspiring homebuyers go back to the rental markets scared that there is no way they will afford to buy a house.
Below are ways you can use to buy a new home.
1. Make a Down Payment
The more you will contribute to the purchase of your new house the lesser your monthly mortgage cost will be. Before you go house hunting add up all the money you have to save up including gifts form friends, savings and tax refund. If you do not have any money saved up for a down payment do not worry, there are some departments which can offer you low down payment options.
2. Make Sure You Reduce Your DTI
Another consideration to think of to qualify for a mortgage is the DTI or debt to income ratio. Lenders usually add you all your monthly debts including your future mortgage and calculate how much all of that adds up for your monthly gross income. If your DTI is high, you might not get qualified for a mortgage.
3. Explore All Loan Options
Do not fixate your mind on a specific mortgage loan plan. Instead, consider all the available options before you even begin house searching. Also, you can talk to a professional mortgage to advice you more on what to do.