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answer should come from your gut instinct
and only after you have spoken with
a qualified lender. Ultimately you're
the only one who can determine what
you can realistically afford. You need
to do your homework about firs time
home buyer loans and find out the
maximum mortgage you qualify for and
then give some thought as to whether
it falls within your personal comfort
zone.
A
potential lender will run some numbers
for you and come up with a magic number
based on the financial information you
supply and your personal credit history.
Although it may be in the ball park
of what you can afford, it may prove
to be too much of a financial hardship
in the years ahead.
First
off, if you currently rent don't use
your monthly rental fees as a comparison.
First time home buyer loans are
very different - it's like comparing
apples and oranges.
Use
your monthly rental costs as a guideline
only. On one hand it would make sense
to compare the two but you also have
to consider other factors such as the
need to pay extra for property taxes.
In a rental situation such taxes were
incorporated in your rent. Property
taxes can vary between a few hundred
to a few thousand dollars per year depending
on where you reside.
Furthermore,
did your rent include utilities? If
so, you also need to factor in the cost
of gas and hydro in addition to the
cost of any firs time home buyer
loans. And what about having enough
money you can put aside as an emergency
fund for home repairs and general maintenance?
Remember you no longer have a landlord
you can call upon when something needs
fixing.
Then
there's mortgage insurance to consider
whenever you're shopping for firs
time home buyer loans. This is especially
important if you have a high-ratio mortgage.
Another
good rule of thumb when shopping for
firs time home buyer loans is
that if your current rent falls within
your comfort level, aim for a slightly
lower monthly mortgage payment.
Exploring
your total monthly debt load as well
as your total monthly housing costs
is one of the best ways to figure out
what is a realistic mortgage payment.
Your
next task is to find a lender who specializes
in firs time home buyer loans
and who will offer you the best deal.
Again research and comparison is needed.
It will take you some time to investigate
both lenders and loan packages. But
it's time well spent. The time you took
to investigate the best in firs time
home buyer loans could literally
save you thousands of dollars over the
course of your mortgage.
The
bottom line when searching for first
time home buyer loans is to invest
in doing your homework. Research all
your options before you start looking
for that dream home.
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