First-time home buying can be one of the greatest joys someone experiences. Obtaining a place they can call their own might seem a bit overwhelming, but there are simple steps to follow before starting the process, and some to keep in mind along the way to help you land your dream home.
Understand Your Financial Picture
A straightforward step is to examine your personal finances before deciding if buying a house is the right choice at that time. Consider your current housing expense and use that information, combined with your current debt load, to determine what an affordable monthly housing payment would be.
Once you’ve determined a comfortable monthly payment, the next thing to look at is the necessary out-of-pocket expenses. For first-time home buyers, down payments range from 0-5%, and closing costs, in addition to the down payment, range from 2-5%. Closing costs include things like inspections, property taxes, appraisals, and homeowners’ insurance. However, all first-time homebuyer loan programs allow closing costs, if negotiated into the contract, to be paid by the seller. Knowing the funds you have or have access to helps narrow your home price range.
A Pre-Approval is Everything
Before you get started, understand that pre-approvals are necessary during this home-buying process. This step usually involves working with the loan officer, who will verify your financial information to confirm you are in good financial standing. A pre-approval will give you a solid basis for locating a home you’ll be approved to purchase.
This pre-approval also shows that you are a serious buyer, which makes a seller more likely to take you seriously.
Understand Your Loan Options
There are a variety of loans for first-time home buyers, so make sure to contact a mortgage loan originators rconduct proper research. Between conventional, FHA, USDA, and other loan types, each has different requirements that may or may not fit your needs. If you’re an eligible veteran or service member, VA loans are an excellent choice and a great reward for your service.
If you’re unsure where to turn, reach out to one of our mortgage loan originators. Our experienced team of professionals will listen to your situation and guide you toward the right loan type.
Remember Your Inspection
Never overlook your home inspection during the home-buying process. This inspection is a crucial step where a licensed home inspector will paint the full picture of the house you’re buying. The home inspector will provide insights into the roof, plumbing, electrical systems, and other significant features to ensure you’re getting exactly what you’re paying for.
Remember – Not Everything Will Go Right
For such a big decision, always remember one thing: not everything in the home-buying process will go perfectly. You might miss out on your first choice, negotiations may not go as planned, or your home inspection could reveal issues that need fixing after the sale. These are all emotional hurdles, so it’s essential to stay balanced and follow the advice of your expert real estate agent and loan officer to ensure you reach your goal.
Conclusion
If you take anything from this article, be prepared and work with an experienced team. Understand your financials, the pre-approval process, and where to turn for help if you experience any hiccups. As mentioned before, if you have any questions, our team at My Easy Mortgage is always ready and willing to help first-time homebuyers fulfill their dream.
Whether you are a first-time buyer or looking to refinance, My Easy Mortgage, a reputable mortgage broker located at 2405 Creel Lane, STE 102, Wesley Chapel, FL 33544, and 16703 Early Riser Ave, Suite 266, Land O’Lakes, FL 34638, has a team of experienced professionals who can guide you through the process. Contact them at (813) 513-9846 to discuss your mortgage needs.
