Congratulations on starting your home buying journey. It’s an exciting time to be looking for your dream home or starter home.
That is a question many home-buyers ask themselves when they are in the process of buying a new home.
Purchasing a home is one of the most significant investments you will make in your lifetime.
You must take the time to define a budget and carefully evaluate your financial situation before you start looking for your new home.
How Much Down Payment Do I Need To Buy a House?
The required down payment amount will depend on various factors, including the terms your mortgage lender mandates, the type of mortgage loan you get, and how much money you have saved up.
What are the Various Types of Mortgage Options?
There are several types of mortgages, including 30-year fixed-rate loans, 15-year fixed-rate loans, and adjustable-rate mortgages, where the interest rate changes after every 3 to 5 years. Talk to your lender about all your options.
What Numbers and Ratios are Important to Mortgage Lenders?
Now that you have decided on your down payment and mortgage, the next step in calculating how much house you can afford is to figure out your debt-to-income ratio (DTI).