First Time Home Buyer’s Checklist:
1. Check your credit score.
This is the number that lenders will look at to determine if you are “credit-worthy.” The higher your score the lower your interest rate will be, which is what we want! Clean up any errors or blemishes on your report.
2. Calculate your monthly payment.
Use a mortgage calculator and determine what monthly payment you are most comfortable with (be sure to add a little extra for property taxes and homeowner’s insurance). Lenders look for a debt load of no more than 43 percent of your gross monthly income. This includes car loans, student loans, credit cards, etc.