1. Decide how much you want to put down for a down payment?
If you have at least 5% to put down as a down payment for a home and have decent credit you can probably qualify for a conventional loan. If you only have 3.5% then you will have to go FHA. When trying to determine how much you would like to put down as a down payment keep in mind additional costs that maybe requeired. Additional costs will include closing costs(Loan orgination, title insurance, attorney fees, etc) and also any fees you will need to pay for an inspection and apprasial.
2. Decide on loan type and terms.
Check out my blog post on FHA vs Conventional loans
Also you will need to decide if you would like to use a fixed rate or variable rate loan, the length of the loan, and which lender to go with. 30 year fixed loans are by far the most coman loan option on the market. If you have a large downpayment and the ability to pay off the loan faster you can explore a 10 or 15 year mortgage, which have lower rates than a 30 year mortgage.
3. See how much you can afford or are willing to spend on monthly mortgage payments.
You can use our mortgage calculator below
Keep in mind most lenders and financial guides recommend keeping your housing costs at 30% or less of your income.
4. Decide if you want to live in a Condominium, Townhome, or Single Family Home.
homebuyers have to consider many factors, including:
- Location and lifestyle
- Maintenance costs
- Rules of ownership
- Lending and price
- Monthly fees
Also keep in mind there will be additional costs besides your down payment when purchasing a home. You will need to account for the related home buying costs of Inspections, Appraisals, and closing costs. If you have any questions or need additional information please feel free to Contact Me.