How to conquer those first-time buyer jitters.
Buying your first home can evoke a wide range of emotions: excitement, anticipation ... and worry. However, there’s no reason to lose sleep over the prospect of homeownership. Here are some strategies and solutions for dealing with common concerns shared by other first-time buyers.
If your debt-to-income ratio is 43% or higher, you can comfortably afford a mortgage with a similar monthly payment as your current rent. However, you may still have affordable options if you score lower than 43%.
Another solution: Instead of buying an existing home, buy a new home. If you want to keep costs lower, check out “move in ready” new homes. Reputable builders offer one or more warranties for every home they sell.
Buying your first home is an exciting, fulfilling experience, especially when you buy a new KB Home. This is because KBHS Home Loans, the financing partner for KB home, will assist you with financing from start to finish.
Contact us and let us know how we can help you. Find a loan officer nearest you.
1. I’m not sure I earn enough money to buy a home.
Here’s a good way to find out if home ownership’s affordable for you. Add up your monthly debts — rent plus credit and loan repayments — and divide them by your gross monthly income. This is called your debt-to-income ratio.If your debt-to-income ratio is 43% or higher, you can comfortably afford a mortgage with a similar monthly payment as your current rent. However, you may still have affordable options if you score lower than 43%.
2. I don’t want to use my savings as a down payment.
Chances are, you can buy a home with little or no savings withdrawal. Here are some of the options available to you:- Several home loan programs, including those insured by the Federal Housing Administration (FHA), only require a 3 to 4% down payment.
- You may be able to borrow the down payment from your 401(k) instead of making a savings withdrawal.
- If you’re a military veteran or still in active service, you may qualify for a VA loan with a zero down payment requirement.
- You may qualify for state or county down payment assistance. Many of these programs don’t require that you repay these loans, as long as you remain in your home for a certain number of years.
3. What if something breaks? Or leaks? Or catches on fire?
Relax. Some home repairs may be covered by homeowners’ insurance, and others (like fire) can be prevented by installing an affordable alarm system. For minor problems like leaky faucets, check out YouTube or visit your local hardware store for advice.Another solution: Instead of buying an existing home, buy a new home. If you want to keep costs lower, check out “move in ready” new homes. Reputable builders offer one or more warranties for every home they sell.
Buying your first home is an exciting, fulfilling experience, especially when you buy a new KB Home. This is because KBHS Home Loans, the financing partner for KB home, will assist you with financing from start to finish.
Contact us and let us know how we can help you. Find a loan officer nearest you.