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Buying Your First Home

Sep 19, 2016

Buying your first home may seem challenging. While it can be fun to look through real estate sites searching for your dream home, the real work comes when it’s time to focus on your finances. To purchase a home, you need to determine your debt-to-income ratio and create a solid budget.

Bank of Internet USA is here to help you navigate your first home purchase. Let us walk you through some of our insider tips to help you get the most for your money with your new home.  

Setting a Homebuying Budget

You may have a list of must-haves for your new home, but what is a realistic price range for you? An excellent resource to assist you with your budget as a first-time homebuyer is a
mortgage calculator. A mortgage calculator gives you an idea of what your actual monthly payments will be - including taxes, insurance, and interest. 

A mortgage calculator can also help you understand how your interest rate and overall payment may be impacted by a 20-percent down payment, a 10-percent down payment, or no down payment at all.

Once your homebuying budget is set, it’s time to enlist the services of a real estate agent to find your dream home while we help you with your purchase.

Finding The Right Home Loan

A conventional mortgage generally requires a 20-percent down payment, as well as a debt-to-income (DTI) ratio of roughly 28/41 with a good credit score. But what does that all mean?

A  DTI of 28/41 means that your debt is less than 28 percent of your total income without a mortgage payment or less than 41 percent of your income when including a mortgage payment.

If you cannot afford a 20-percent down payment or don’t meet the credit and DTI requirements, there are still lending options. A government loan, such as an FHA or VA Loan, offers lower down payments and more flexible approval qualifications to assist you in purchasing your home.

Negotiating Home Improvements

Many buyers are not able to afford a turnkey property as their first home. If you are looking to
buy a home that is a fixer-upper, request that repairs be made before closing or offer a reduced price to account for repair bills.

You can also request seller concessions that may reduce your total out-of-pocket closing costs. These savings could then be put towards refinishing the floors, fixing the roof, or improving the landscape.

Are you ready to purchase your first home? If so, we invite you to reach out to one of our friendly Mortgage Consultants to learn more about mortgage options for first-time homebuyers and our industry-leading mortgage rates for our jumbo loans, government loans, and conforming loans. Call us today at 1-888-546-2634.

"Buying Your First Home"

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