Buying your first home is a big deal. It’s easy to get wrapped up in the excitement and overlook important details. As a first-time homebuyer, you’ll want to make sure that you’re doing everything you can to set yourself up for success.
That being said, since this is your first time going through the process, you may be unsure about where to start. Don’t worry; we’re here to help! Below, we’ve listed some strategies you can use to navigate the journey ahead.
Expert Tips for First-time Homebuyers
From applying for a mortgage to finding the perfect house, there are many steps involved with the homebuying process. As a first-time homebuyer, it’s important to think critically about how your decision will impact your life both now and in the future.
With a little bit of planning and preparation, you can set yourself up for a good experience and tackle the challenges ahead with ease. Below we’ve listed some tips, strategies, and advice to help guide you along your journey.
- Pay down your credit cards and other debt.
- Set aside money for an emergency fund that can be used for unexpected repairs, maintenance, and other expenses.
- Figure out how much house you can afford. A good rule of thumb is that you want your housing payments to be no more than 25% of your monthly income.
- Start saving for a down payment as soon as possible. Ideally, you want to be able to put down somewhere around 10-20%. If that sounds unreasonable, shoot for the 3.5% required for an FHA loan.
- Set aside money to pay for closing costs and other fees. These are expenses that you’ll have to pay in addition to the down payment.
- Explore your loan options. When you’ve found one that’s a good fit, you can apply to be pre-approved.
- Think critically about neighborhoods where you may want to live. Research schools, crime rates, commute times, and amenities.
- Work with a real estate agent to find a home within your price range. When you’re ready, work with your agent to submit a competitive offer.
- Set a budget and stick to it. It’s good to shop around, but you shouldn’t feel pressured to buy a home that’s more expensive than you can afford. You know your finances best so while it’s good to get advice, at the end of the day, the decision is yours so it’s best to use your own judgment.
- Keep in close contact with your lender and submit documents in a timely manner. This way, you can avoid making mistakes that stop you from being able to close on time.
Start Your Journey Today
At Mortgage Solutions Financial, we love working with first-time homebuyers. We are here to help you through the process and will do anything we can to support you along your journey. Call today to speak to an expert and begin the application process!