First-Time Home Buyer Tips
Tips for First-Time Home Buyers
We know that the thought of buying your first home can come
with a lot of emotions. While it can be very exciting, it can also be a bit
scary. Nobody wants to make a big, costly mistake! That’s why it’s important to
do your research first.
Here are a few tips to help make your life a bit easier as
you look to purchase your first home.
- Start saving for a down payment. In addition to the down payment, you must be prepared to pay for closing costs, which could run anywhere between 2% and 5% of your loan amount.
- Determine how much you can afford. Keep in mind that you should also have some money saved up for after move-in expenses, i.e. painting rooms, buying appliances, replacing carpets, etc. And, property taxes are a real thing once you become a homeowner! They vary based on locations, so be sure to factor that and homeowners insurance in when determining what you can afford.
- Get a pre-approval letter. Just because the bank “approves” you for $350,000 doesn’t mean that’s how much you should borrow. You don’t want to end up “house-poor” with little to no money left after paying your mortgage payment. Be sure you still have money left for food, monthly bills, entertainment, etc.
- Find an experienced realtor that you know and trust. Discuss your basic desires in a home, such as size and location. While it’s good to remain somewhat flexible, you deserve to find a home that fits your needs and wants as closely as possible.
- Be patient and stick to your budget. Your realtor will help to locate homes to fit your budget and meet your needs. If a home meets your needs in terms of big things that are difficult to change, don’t let physical imperfections (hideous wallpaper in the bathroom) scare you away!
- Once a home has been selected, explore your down payment and mortgage options.
/personal-banking/loans-and-credit/mortgages
a. Conventional mortgage
b. Federal Housing Administration (FHA) loans
c. Department of Veterans Affairs (VA) loans - Make an offer. Your realtor will work with you to determine how much you want to offer. If there are items that need fixed, don’t be afraid to negotiate those items.
- Schedule a home inspection. If there is anything you’re skeptical of, be sure to ask the inspector to take a closer look. Ask questions.
- Close or move on. If a deal has been reached with the seller and the home inspection didn’t send up any warning signals, it’s time to close. If an agreement can’t be made, don’t be afraid to walk away.
Buying a home doesn’t have to be stressful! We offer
flexible financing options to suit your needs. As a first-time home buyer,
click here to see what perks you may be eligible for.