Are you a first-time home
buyer ready to get into the market? Here are steps to take to
help you decide if you're ready to take the plunge.
1. See how much
house you can afford. Find out what your total monthly housing
cost would be, including taxes and homeowners insurance. To get
a feel for the maximum amount you should spend, including taxes
and insurance, use Bankrates home
2. Find out how much
you'll likely pay in closing costs. Closing costs include
origination fees charged by the lender, title and settlement
fees, taxes and prepaid items such as homeowners insurance and
home owners association fees. You can see what closing costs
average in your state by looking at Bankrate.com's annual
3. Look at your
budget, Fannie Mae recommends that buyers spend no more than 28%
of their income on housing costs. Go much past 30% and you risk
becoming house poor.
4. Get pre-approved
for a mortgage before you start looking for your house. This
will ensure that you are looking at houses within your budget.
5. Check the selling
prices of comparable homes in your area of interest. Contact
your local reputable Real Estate agent to help you find what the
market price is in your areas that you’re interested in.