Vintage

So you're getting married and dreaming about buying your first home? There are many questions to be answered, and decisions to make. Do you want to buy a condo or a house? How big of a home do you need? How would you get a down payment?

What most people don't realize is that the number of loan products available today makes it much easier to get into your first home without a down payment. What's important is that you discuss your financial situation with an experienced lender. This consultation is free and it is very educational. The loan consultant can help you find the loan that is right for you.

When preparing to buy your first house, there are some simple steps in creating a successful homeownership plan.

Get your financial situation in order

Since many couples incur some debt during their wedding, it's important to know what debts you have when preparing to buy a home. Couples with high debt may have a tough time qualifying for a home loan, and could also face higher interest rates. If you fall into this category, don't worry, your loan consultant can help you determine a plan to pay your debts so you may qualify for a loan.

How much do I qualify for? One of the advantages of working with The PINZON GROUP is we do an analysis of you financial situation, in order to offer you the loan that fits you. Remember! You determine how much you can pay. There are four factors that determine how much you can afford:

Debt Level

Mortgage lenders also require that a combination of your mortgage payment plus other monthly debt payments be less than a certain percentage of your income (typically 40 percent of your total gross income). If you have high revolving credit balances or other monthly debt, this could limit the size of the mortgage you can get.

My recommendation is: Buy your home before you buy your dream car!

Income

In general, most mortgage lenders require that your mortgage payment be less than a certain percentage of your monthly income. In many cases, your income will impact the size of the mortgage you can get, and how much house you can afford.

Term of Loan

The term of the loan is another factor in determining the monthly payment. The monthly payment is affected by the term of the loan and the type of loan, adjustable rate versus fixed rate, for example. Mortgage lenders have a responsibility to qualify you for a loan that you can afford. I recommend a fixed rate and without any penalties, in order to avoid any restrictions and future surprises.

Cash available

Unless you qualify for an affordable home loan, there is a good chance you'll need at least 5% for your down payment. If you get money as wedding gifts, you could use it for a down payment if needed.

Be prepared for the home search!

Once you know how much you can qualify for and what program you will get, then you’ll be ready to search for the home you want. A Realtor will help you find the home you desire, at the price you qualify for and with the dimensions you need, 2 or 3 bedrooms, number of bathrooms, etc. Remember, if the lender gives you an amount limit, do not look at homes of a higher price, this will only bring you stress and at the end you will not be able to purchase it.

Recommendations

• Buy within what you can afford, do not attempt to buy a home just like your parents, it took them a while to buy a home that size.

• Begin this process before the wedding, by doing this you could come back from your honeymoon to your own home and not to an apartment. Also, it is easier to qualify before any changes in your life style, if the spouse stops working, having babies, for example.

• When you get married it is not time to buy expensive cars, this will only limit your loan.

Remember, you can start a new life as a couple with a new home, it is reachable.