In this video below, I go over the 3 major hurdles first time home buyers face. As well as give you the tips and advice needed to prepare for them.
Hurdle 1: Credit
For most first time home buyers, credit is the biggest obstacle. For an FHA loan with 3.5% down you will need a credit score of 580 or higher and for all other loan programs a 620 or higher.
Hurdle 2: Debt to Income
A lender will look at your total monthly debts and compare that as a percentage of your total monthly income. Lower is better but you want to keep your DTI under 30% to give you the most options.
Hurdle 3: Savings
When buying a home, expenses can add up. There are closing costs, down payment and deposits to consider. Plan on saving around 3%-5% of the purchase price to be safe.