Tips For A First Time Homebuyer

For most people, a home is the biggest purchase they will ever make. It is the center for half of your life: Where you rest your head at night, enjoy time with your family and friends, and create a space of your own that's truly yours. When first getting started, it can seem like a daunting process, so we’ve created a list of steps and helpful tips to help make the process as seamless as possible. 

Number One: Start Saving!

There are a few costs you need to keep in mind when saving for a home. Here are what you will need to begin saving for: 

• Down Payment: The downpayment on your home payment will be based on the lender and type of loan that you choose. There are many county programs that can help you with down payment assistance and loans that can get you as little as 3% down! It’s a good idea once you know your budget to use a down payment calculator to find out what amount you should be saving for. 

• Closing Costs: Closing costs are paid at the end of the deal to establish your mortgage. You can expect between 2-5% of the total loan amount in closing costs. You can ask in negotiations to have a seller pay a portion of your closing costs. This is where a realtor skilled in negotiations can help!

• Post Closing: Don’t forget to factor in expenses such as furniture, upgrades, and any repairs that need to be completed on the home. 

Number Two: Find Out What You Can Afford

• One of the first steps in the home buying process is getting pre approved for a mortgage so that you and your realtor will know what price range to shop in for your future home. This process is done through a lender, and is an easy process that will show potential sellers that you are qualified to engage in a transaction for their home. 

• Lenders will want to see that you have a strong credit history as a buyer, so it’s important that you have a good credit score to help you secure a loan. A great first step when getting preapproved is finding out your credit score to make sure that you can have the proper score to secure a loan when the time comes. 

Number Three: Find The Right Realtor To Help You Find The Perfect Home

• You want to find a Realtor that is experienced and knowledgeable in your area and market. Having a local expert guide you through the process will help you find the right home at the right price. 

• Choose a Realtor that you work and communicate with well. Especially for first time home buyers, it's important to work with someone who can help any questions that arise and make sure you are well informed throughout the home buying process. 

Number Four: Start Shopping Online And In Person: 

• When you begin your search, don't forget to utilize online resources to get an idea of inventory before you start seeing homes in person. In this day and age, professional photography and videography allows for you to get a great idea of what a space is like before you even take a step inside. 

• Make sure to use your account on our site to see properties right as they come on the market! You can explore your options, select your favorite properties, and make direct inquiries to your Realtor when you have a question about a property. 

Number Five: Explore your loan options 

• There are many different options available for financing your new home. FHA loans are a popular option among first time home buyers, insured by the Federal Housing Administration and allowing down payments as low as 3.5%. 

• Conventional financing: Some conventional loans target first time home buyers with rates as low as 3.5%, but are not guaranteed by the government.

• VA Loans: For current and former military members, VA loans typically offer as little as 0% down and are guaranteed by the Department of Veteran Affairs.

You will have options when choosing your mortgage term, with most buyers opting for a 30 year loan with a fixed interest rate. You can also choose a 15 year loan term that will offer a lower interest rate, but will result in higher monthly payments. 

When you are ready to buy your first home and learn more about the process, The 808 Team is here to help every step of the way. 

Written By: Connor Carrigan