Things That Can Hinder a First Time Home Buyer (and How to Overcome Them)

Knowing when the best time is to buy your first home is essential, as many contributing factors can hinder the experience. Take into account the following aspects that can be potential pitfalls for a first time home buyer. 

Having a bad credit score will affect the home loan you are able to receive. With a conventional fixed-rate mortgage, you may attract higher interest rates and additional fees.  

Bad Credit Score

Having Too Much Debt

When purchasing a home, a mortgage lender will assess your debt-to-income ratio (DTI). If your DTI is too high, you may have a hard time getting approved for a mortgage. 

As a rule of thumb, a 20% down payment is the ideal amount to put toward the purchase of a home. The more you pay upfront, the lower your monthly repayments will be, and the more money you will save in the long term. 

Limited Down Payment

Expensive Real Estate Market

Knowing the best time to buy is essential. Research the area where you are most interested in purchasing a home to learn whether home values have fallen or risen over the past year. 

Beyond purchasing a home and making regular mortgage payments, homebuyers have other recurring costs that need to be factored into the responsibility of owning a home. These costs include annual property taxes, homeowner’s insurance, utility costs, home maintenance, and closing costs.  

Not Knowing All the Costs Involved in Home Ownership

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