1038. Are you thinking about buying your first home but feeling overwhelmed by interest rates, upfront costs, and hiring a real estate agent? Host Laura Adams walks you through 9 tips every first-time homebuyer must know to protect their finances and land the right deal.
Key Takeaways:
- How subtle changes in your credit score can save (or cost) you tens of thousands in today's rate environment.
- Most mortgage underwriters look for a maximum debt-to-income ratio of 45% to 50%, which includes your existing debts plus the new estimated housing payment.
- Hidden homeownership expenses—from surging insurance premiums to HOA fees.
- You should budget 2% to 5% extra for closing costs beyond your down payment to cover loan origination, appraisals, taxes, insurance reserves, and title fees.
- Why you need an additional 5% of a home’s purchase price saved on top of your down payment.
- A prequalification provides a loose baseline for house hunting, but you need a verified preapproval before making official offers on properties.
- Contract contingencies, such as financing, appraisal, and home inspections, safeguard your earnest money deposit if unmanageable structural defects arise.
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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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