An Ultimate Guide for First-Time Home Buyers



First-time home buyers might find buying a home such a haunting task. It is okay and we will show you some tips and a guide before you drop your decision. Getting the right house for you is everyone’s dream and we want you to get what you’ve wished for.

First-time home buyers – Mortgage down payment

You need to prepare for the down payment before purchasing a property especially if this is going to be your home. Saving for a down payment would help you a lot. If you are not sure how much you need to set aside, you can use a down payment calculator on the internet.

At some point, you need to explore your options. Some loans may help you to settle with the down payment such as VA loans, FHA loans, and conventional mortgages. If you can pay a higher down payment, you will be paying lower for the monthly mortgage.

And of course, you need to research state and local assistance programs for first-time home buyers. Many programs provide interesting and useful perks for home buyers such as assistance for discounted interest rates, tax credits, closing costs, and down payment.

First-time home buyers – Mortgage application

Before applying for a mortgage, you need to find out how much you can afford for the house. If you are not sure, you can use the home affordability calculator to find out how much you can spend without suffering.

Also, it is recommended to check your credit score and skip any new activity for a while. Other than that, you better not open a new auto loan or a credit card when you apply for a mortgage. This will affect whether or not you get the opportunity.

It is important to compare mortgage rates from one to another provider. You need at least three lenders to compare because it could make you save at least USD 3,500 for the first five years. Feel free to ask the lenders if they would allow you to buy the discount points. The discount points are used for prepaying the interest upfront. Later, you will get a lower interest rate.

You might be pre-qualified for a mortgage and it shows you how much the lender will lend you money according to your debts and income. And if this is your case, you need to ask for a preapproval letter. You will look more serious when a seller makes an offer for you.

First-time home buyers – Shopping

You will need to hire a real estate agent. Make sure this person knows the area where you will purchase a house. Also, you need to pick the right house in the right neighborhood. Make sure the house suits your needs.

After that, you should make it suits your budget. Make sure you have your emotions in control because you do not want to spend more money just because you like the house. And when you are attending open houses, take a look at the details. And this is the guide for first-time home buyers.