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First-time homebuyer? Don’t make this costly mistake

First-time homebuyer? Don’t make this costly mistake

March 27, 2022 By David Banks Leave a Comment

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.

Key Takeaways:

  • 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.”

Read more: https://www.today.com/money/tips-first-time-home-buyers-how-avoid-expensive-mistakes-t236147?fbclid=IwAR0hfL7vtOwNmOnvaHw5JetwhWoM2snLPiVDTOK9Eo7yya3jmuy0lIds5mI

Related posts:

  1. The Paint Color Trends We’re Ready To Ditch in 2022
  2. Homebuyers Are Baffling Real Estate Agents With High-Tech Home Office Wishlists
  3. Pre-Qualified vs. Pre-Approved: What’s the Difference?
  4. 10 Creative Ways to Save for a Down Payment

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