The housing market is hot right now, which can be intimidating for first-time home buyers. One expert advises buyers to look for homes that are a bit under their budget and to be willing to compromise on some issues. It is also recommended to abide the 28/36 rule: the mortgage payment shouldn’t exceed 28% of monthly pre-tax income or 36% of total debt. If you can’t afford a 20% down payment, look into assistance programs for first-time homebuyers. Finally, avoid making the biggest mistake, which is forgoing the home inspection. Doing so can lead to nightmares down the road.
- Home prices in the United States are expected to increase by nearly 12% over the next 12 months.
- If you are a first time home buyer make sure that you come up with a budget that includes closing costs.
- Make sure that your mortgage payment won’t be more than 36% of your total debt or 28% of your pre-tax income on a monthly basis.
“You can still take steps toward the rite of passage of adulthood and homeownership is still a possibility, says NBC senior business correspondent Stephanie Ruhle.”