This is it. My dream house. Full on Americana style. Not a huge yard, but decent. Porch with chairs, for me to relax and drink some sweet tea. THIS is what my family and I are working on. There is a LOT you need to know before getting started and I’m here to help show you what we have been doing and also what I plan on doing. In fact I’ve been using Capital One’s Tips for First-Time Homebuyers on the Home Loans Online Neighborhood to help figure my way around mortgage land. What does it do? Capital One’s goal is help first-time homebuyers understand how the home loan process works, which is why they’ve launched a new online learning center that features the know-how they’ll need to become the savviest homeowners on the block.
Tips for First-Time Homebuyers
- One of the first steps is figuring out how much home you can afford. Start by sticking to the right price range. A rule of thumb is to look at houses that are 2.5 times your annual salary.
- Ideally, your monthly housing payment shouldn’t be more than 28 percent of your gross household monthly income.
- Use an online mortgage calculator to help figure out what you can afford.
- Your financial history is important too. Lenders look at income, assets, job history, credit score, total debt and how much you’re willing to put down as a down payment.
- The traditional estimate for a down payment is 20 percent of the purchase price of the house, which can lower your monthly payments and avoid mortgage insurance better than a lower down payment.
- Remember that closing costs can add to the amount you need to close your loan and take possession of your new home. Look them over carefully, because they can vary from one lender to another.
- Mortgages come in all shapes and sizes, and which one you choose depends on a lot of variables, including your budget, the amount you can afford to put down, the interest you’ll pay and the term length. All mortgages have pros and cons, but starting with at least a top-line understanding of what’s available is important as you save for this major purchase.
We are currently saving for a down payment in a separate savings account. I have found that if the money goes directly into that account it’s easier for me not to touch it. We also monitored our credit and was able to get some older things cleared off to raise our score. The CapitalOne Home Loans Online Neighborhood has helped us so much on this journey! It’s full of informational videos, documents, myths, calculators, info, and more. PLUS, if you’re interested in learning more about Capital One Home Loans and how we can help you get home, visit https://www.capitalone.com/home-loans/direct/learning-center or call us at 855-900-8886. I’ll keep you updated on what we decide to do in just a few months!
I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.