Whether you’re moving out of your dorms, your family’s home, or your apartment, buying your first home is an adventure. But as with every adventure, the road to your destination can be a daunting task, with potential obstacles and hardships in the way.
That’s why Central Bank is committed to being there every step of the way for you, from before you submit your application to the moment you walk into your front door for the first time. We’ve assembled our first time homebuyer guide to help you make a confident first step on your journey. You can also talk to one of our home loan experts for more information.
How much home can I afford? There are many factors to consider when asking yourself that question. Your home buying budget will determine how much house you can buy and where you can buy, so it’s important to get it right from the beginning.
Everyone’s financial situation is different, and everyone’s homebuying experience is different. As a result, no home loan is a “one size fits all” solution. Depending on your financial situation, the amount that you need to borrow, as well as your down payment amount, will be unique to you.
As a general rule, though, our loan officers recommend that a family or individual should not spend more than two-and-a-half times their annual income on their home. For additional information, check out our home affordability calculator, which will help you determine what you can and can’t afford. And, of course, should you have any questions about what you can afford, contact us.
There are more costs to consider beyond your downpayment amount, as additional costs are part of the process. When browsing the housing market, incorporate these costs into your budget:
Getting prequalified is an important step. When Central Bank prequalifies you, it means we have reviewed your application and approved you for a loan before you even put an offer on a home. That way, you save some time in the process. Additionally, some sellers will not sell to individuals who are not prequalified.
There are many different types of mortgage options and first time home buyers programs available. Each loan option has its own requirements, and depending on your financial preferences and situation, certain options may be a better choice.
At Central Bank, we love helping first time home buyers through the home buying process. Let us assist you. For more information, or to apply for a loan, simply contact us.