Can You Afford to Buy Your First Home?

If you are like many other first-time homebuyers, you may have spent a considerable amount of time saving up for your down payment. Depending on the loan program that you qualify for, this may equate to 10 or 20 percent of the sales price in many cases. While this is undoubtedly a large chunk of change, the unfortunate reality is that it is only one of many expenses that you will be responsible for when you buy your first home.

Closing Costs
Closing costs are often less than the down payment, but they can be hefty nonetheless. These expenses run the gamut from the lender’s fee to title insurance, prepaid taxes and insurance, the attorney’s fee and more.

Appliances
Whether you are buying a brand-new home or an established home, there is a good chance that you will need to buy at least a few appliances. Almost universally, previous owners take their laundry appliances with them when they move. Often, the refrigerator may be another appliance that you are responsible for buying. However, the oven, range and dishwasher remain in an established home, and they come with a brand-new home.

Furniture
Anytime you move, you may need to get rid of some furniture and buy a few new pieces. This is because room dimensions, the room count and other factors may differ. For example, you may have an extra bedroom to furnish, or your sofa may not fit in your new living room. You could easily spend several thousand dollars buying new furniture and accessories for your new home.

Learn More About Your Loan Options Today
Keep in mind that the upfront costs associated with getting into the home may be combined with ownership costs. For example, you will be responsible for property repairs, maintenance work, insurance, taxes and HOA dues going forward. As you crunch numbers to determine if you can afford to buy a new home soon, you need to have realistic loan numbers to look at. Contact the MortgageDepot origination team today to get prequalified for your first home loan.

Connect with one of our loan consultants to learn more.