If you are a first-time home buyer, congratulations! There is nothing like buying your first home. You may be wondering about the process and the costs involved, but rest assured, my goal is to help you feel comfortable about your home purchase through educating you about it. I encourage you to ask questions throughout as you need!
Please take a look at the information on the other buyer information pages, but here are some additional things to keep in mind:
Home Buying Budget – Talking with a lender, submitting your paperwork, getting pre-qualified, and learning your max home buying budget is a critical first step. You may not need your entire budget, but it is important that we get this first financial hurdle out of the way so you can be ready to make an offer when the perfect property comes up.
Down Payment, Loan Amount, and Mortgage Insurance – Many of the first-time home buyers I work with don’t have a large down payment and will be financing most of the purchase price. Luckily, there are more loan programs available now that accommodate a low-down payment. Alternatively, you might receive a gift of a down payment from a family member. Most lenders require mortgage insurance for loans in which the owner does not have 20% equity (for example, if the purchase price of the home is $300,000 and you aren’t putting down at least $60,000, mortgage insurance may be required). Mortgage insurance is simply an insurance policy which benefits the lender in the event the home must be sold to avoid a loss, but it is important to factor this into your monthly payment.
Different types of loans – Many of the first-time home buyers I work with require a government-backed loan due to the low-down payment option, although they still work with a traditional lender. Read more about getting a mortgage here.
I love working with first-time home buyers. And remember – because you don’t have a house to sell, it might be easier for you to coordinate your move. I am excited to help you with your new home!
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