The ABCs of Buying Your First Home

July Consumer Tips from the Independent Bankers Assoc. of Texas

Buying your first home is one of the most exciting, and often overwhelming, experiences of your life. If properly educated about the process and prepared for each step you will need to take, this can be not only manageable but also enjoyable. No matter your age or stage in life, buying your first home is a huge milestone. Below are tips to help guide anyone looking for their first home.

Know How Much You Can Afford

Don’t set yourself up for disappointment by looking at homes above your budget. Unless you plan to pay for your house in cash, which isn’t the norm, look at how much you have for a down payment as well as what you can spend on your monthly mortgage. Consider the costs for monthly non-house related expenses so you can live a similar lifestyle after the home purchase. While a lender will tell you the maximum financing you’re approved for, this can often be an amount that would make you uncomfortable on a monthly basis. It’s good to also know your credit score as this heavily impacts your loan.

Do Your Research and Be Realistic

You will have to make compromises, and that’s alright. Make a list of the must-haves for your house—include things like neighborhood, schools, commute and nearby entertainment—so you know what the true deal breakers are. Now begin looking at available houses in the desired areas to understand the costs. It’s helpful to discuss if you’re willing to do work, as these houses will cost less, or if you want a home you can move into tomorrow.

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