Buying a home for the first time can be quite challenging. There are many tasks, steps, and requirements that you will have to make in order to purchase your home. In addition, it can be stressful deciding to make this big of an investment. One of the biggest questions that you are likely to have is whether or not you need to have a down payment in order to buy a home.

Why am I pursuing a home NOW?

The how and “now” of it will go a long way for you making the right choice on a home. Basically all this is referring to is if you are in the right place budget-wise, if the market is in a favorable position, and what your expectations are. Is your current living situation an issue? Do you need adequate housing now and are just looking for anything to fill the gap? Have you been targeting a home for a while that just now came onto a competitive market? These factors will all play a role.

The most important choice to make is how you are going to pursue with your family, and where you going to get advising from. Of course, it’s nice to have a professional in the family or in the neighborhood that can help you get started. However, if they know you, there’s potential for them to be less objective. In most cases, it’s best to hire an unfamiliar, objective perspective to assist your pursuit. This will come for the majority in the form of a financial advisor.

What do financial advisors recommend for me to do?

Most financial advisors recommend that you have a down payment of at least 20 percent to buy your home. However, there are some banks that will not require this amount in order to provide you with a mortgage. In order to qualify for a mortgage you are going to need to have very good credit. This will require substantial work on your end if your credit is on the lower side. Of course, there are alternative options and routes to take, it just will extend the process. Also, professional assistance will always be an ideal way to expedite your situation and improve your chances at getting the best deal.

Seeking out assistance from a mortgage broker will help you determine how much of a loan you can afford. This takes into account your current income, what you can expect on interest and the value of the home, and what the market climate is. Furthermore, market climate may allow you to make a more apt decision as well. Considering where the market is at, whether it be a buyers market or sellers, you may want to take your time when preparing to purchase a home. However, if you budget isn’t much of an issue and you’d prefer to get started sooner rather than later, the advisor will take that into account as well.

In addition, it is important to make sure that you have enough money in savings to live on for at least three months and even better six months. Buying a home comes with many upfront costs and you want to make sure that you can withstand these costs financially.