Tips for First-Time Home Buyers

1. Before you start looking for a home, you should ask yourself a few questions:

• Where do you want to live? Are there particular neighborhoods or communities that you like?
• What kind of house would you like (need)? Are you looking for a particular style like an apartment, a condo, a townhouse, etc.? How many bedrooms and bathrooms do you want?
• Are there any particular rooms you need? Is a home office a necessity? Do you need a bonus room or a flex room?
• Do you entertain often? Do you have guests over often? Is a home suitable for entertaining something you’re looking for?
• Do you want a yard, pool, or guard gated community?

Searching for your dream home can be a long, time-consuming process. However, working with our professional team will make the process much more efficient!

2. Start saving early

Here are the main costs to consider when saving for a home:

• Down payment: Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans for first-time home buyers with excellent credit require as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Use a down payment calculator to decide on a goal, and then set up automatic transfers from checking to savings to get started.
• Closing costs: These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. If you were making a 3% down payment on that $300,000 home, your closing costs could be between $5,820 and $14,550. That’s additional money you’d have to pay on top of your down payment. In a buyer’s market, you can often ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around.
• Move-in expenses: You’ll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades, and furnishings.