Financial Factors to Consider When Choosing Your First Home

Dream Home

Most new families are torn between renting and owning a house. There are pros and cons to both sides, but if you are set on buying a property you would need to be financially prepared. Consider these financial factors first before going on a hunt for your first real estate acquisition.

Your Choice – You may have visions of what your dream house in Ogden would look like but how affordable would it be? Don’t just consider the lowest possible monthly payments because you’re still not sure of your approved mortgage rate and you’ll be in charge of your new home’s upkeep, repairs, maintenance and taxes. Not to mention, you’d still have to take into account your household needs every month. Mortgage Ogden suggests you try to choose a property that will fit your financial capacity.

Your Down Payment – Try to aim for at least a 20% down payment when applying for a loan. Other than the bank, you would find other lenders who are amenable to a small initial but you would eventually lose much via bigger interests with your larger monthly payments. Enlarge your savings and cut down on your leisure spending to come up with the required 20% first before looking through residences for sale.

Your Income – Your cash flow or income will be a crucial factor in keeping your property. Your monthly salary and income will be considered for your mortgage approval along with a number of other factors, so avoid quitting your present employment within the year you plan to buy. If you’ve been recently promoted and have a long history with your present company then you have a better chance of being approved.

All these financial factors will be taken into consideration when computing your present credit score. Your credit rating will then be given greater emphasis in your mortgage approval. So if you believe you are quite capable of reaching these goals, then go ahead and start your search. Good luck with your house hunting!