Are you thinking of buying your first home?

Buying a home can be an exciting prospect but can be difficult if you aren’t adequately prepared. The Montana Board of Housing encourages all potential homebuyers to take a Homebuyer Education class to help determine if it is the right time, personally, for you to buy a home.

Wednesday, April 8, 2015/Categories: Press Release

A young couple moving into their first home.

Are you financially prepared for homeownership?  Analyze your finances to not only determine if you can afford to buy a home, but to ensure that you will be able to pay for other related costs, including maintenance, repairs, utilities, and, in some communities, homeowner's association dues. If you feel that you can afford a home, the next step is to review your financial picture. Specifically:

  • Check your credit. A poor credit report can cost you tens of thousands of dollars in interest over the life of your home loan or can put you out of the housing market altogether.
  • Pay off or down as many debts as possible.
  • Do not take on any new debts. Buying a new car a few months before trying to buy a home could result in your not being able to afford a home.
  • Begin gathering financial documents that you will need when you apply for a mortgage, including the last three years of income tax returns, current paystubs, records of any negative credit history that has since been paid off, and records of any supplemental income and savings you may have.
  • Know exactly how much house you can afford. Once you begin the process, you may find that you qualify for a lot more house than you thought. That doesn't mean that you should buy the most expensive home you qualify for. Only you know what your regular living costs are and what lifestyle you want to have. Don't fall into the trap of overspending on your first home and becoming too "house poor" to enjoy it.

Find a Homebuyer Education class near you.

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HOUSING DIVISION | MONTANA DEPARTMENT OF COMMERCE
301 S. PARK AVE, STE 240 | PO BOX 200528 | HELENA, MT 59620-0528 | P: (406) 841-2840 | F: (406) 841-2841 | TDD: (406) 841-2702 | TOLL FREE: (800) 761-6264