Tips for First-Time HomebuyersBarton Skurbe, Area Sales Manager, Mortgage Banking, Univest Bank and Trust Co.
You've been hearing for months now that it's a good time to buy a home. Interest rates and prices are low, making it a favorable market for first-time buyers. There's a lot to think about when buying your first home, but it doesn't have to be overwhelming. By going into homeownership prepared, you'll be assured you're making a wise decision. Ready to take the homeownership plunge? Here's how to get started:
- Think about your budget. Decide how much home you can
comfortably afford. Typically, your monthly payment should
be no more than 28% of your gross income. Create a budget
with your new house payment included and try it out for a few
months. Bank the difference and not only will you see what
paying a mortgage will be like, but you'll save some extra
- Pay off debt. The less debt you have before purchasing a
home, the better. Lenders usually won't allow your monthly
debt service – such as credit cards, student loans and auto
loans – and your house payment to exceed 40% of your
income. Plus, your mortgage interest rate will be based on
your credit score. If you pay off some debts, your score will
- Save for a down payment. 100% financing is becoming
harder and harder to find. Saving for a down payment will
allow you to qualify for better interest rates, afford more home
and start out with more equity.
- Get pre-approved at Univest Bank and Trust Co. Once your finances are in order, come and see us to learn about the many mortgage products we have to offer. Call us at 877-723-5571 or visit www.askbarton.com to learn more about starting the homebuying process. We can help find the right loan for you.
Univest Bank and Trust Co. is an Equal Housing Lender