Buying a house for the first time can be confusing and exciting! As first time homebuyers, everything is new and unknown – which is why we are here to help!
Here are a few helpful tips to get you started:
Loan Options for First Time Homebuyers
There are many loan options available for first time homebuyers. The key is knowing about your options, so you can pick the best one for your situation.
Here are a couple of potential options:
Fixed Rate Government Secured Loan
- FHA, VA, Rural Development loans are great options for qualifying first time homebuyers.
- Available with just a 3.5% down payment for a 30 year period, or in some cases no money down.
- A fixed rate mortgage generally with a 30 year term, requiring 15 to 20% down and generally available for both single family homes and owner-occupied with rental income.
- Gives you the savings of not requiring the added expense of PMI (Private Mortgage Insurance) in your loan. This allows a great percentage of your monthly payment to be applied toward principal reduction.
Be sure to speak with your Realtors to determine the best loan for you!
The Home Buying Process
The process for buying a home can be confusing, especially if it is your very first time going through it. As a quick cheat sheet, it usually goes a little something like this…
- Save for your deposit
- Get Pre-qualified for a loan
- Find the right Realtor
- Visit multiple homes
- Make an offer
- Negotiate your purchase & sales agreement
- Conduct home inspections
- Negotiate investigation findings
- Finalize your mortgage
- Complete a home appraisal
- Title search and final details for the clear to close
- Close on your new home!!
Budgeting as a First Time Homebuyer
When you are budgeting for your first home, it’s important to know how much to budget. Once you have determined the amount you need for down payment, be sure you also know the amount of closing costs you will be charged by your lender. Equally important, be certain you can comfortably budget the amount needed for your mortgage payment each month.
You should also be prudent to keep payments for things like home improvements and maintenance in mind when creating your budget.
Picking an Agent as a First Time Homebuyer
Picking a great agent is essential to having a good first time home buying experience.
You want to be sure to pick someone who is accessible and professional. You want someone who can answer all of your questions and hold your hand as you make the biggest financial decision of your life so far.
Don’t be afraid to shop around to find the perfect Realtor. Ask your friends and family for recommendations and read online reviews. You can even interview multiple people until you find the right fit.
We are here for you every step of the way of the home buying process. We’ve even put together this list of resources for you, so you can always be in the know.
Ready to buy your first home?
We can’t wait to work with you. Contact us today.