The Basics For First Time Home Buyers

By Bob Jones May24,2023

basics for first time home buyers

At first, the home buying journey may seem daunting and confusing; but with more knowledge and preparation you will find it much simpler to navigate the process and avoid costly errors.

DiBugnara recommends that all first-time buyers prioritize understanding their finances as the top priority, including getting preapproved from lenders and cutting expenses to save up for a down payment. They may also qualify for special programs to assist with down payments and mortgage interest rates; consult local lenders to learn more.

First-time home buyers will find it beneficial to tour homes and explore their preferences when buying their first house. Many listings now provide 3-D or video tours online, making virtual touring convenient; but visiting houses in person will give the best sense of their flow and overall design.

Establishing your monthly mortgage payment budget, which should represent a percentage of the overall home purchase costs. First-time buyers may use an online home affordability calculator to help determine how much is comfortable for them before meeting with a loan officer or financial advisor regarding suitable solutions for them and their specific situation.

Some loan programs specifically cater to first-time homebuyers, like VA and USDA Mortgages that offer 100% financing. Conventional loans require first-time buyers to come up with a down payment of 3-20% depending on the loan, and gift funds from relatives may also be an option; but for more information and guidance regarding gift funds from family it would be best to speak with a licensed Mortgage Loan Originator about what options may exist for you.

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Once your finances are in order, a qualified mortgage professional can assist with the remaining steps of purchasing your home – this may include applying, qualifying for the mortgage, making an offer, scheduling home inspections and finally closing on it. First-time homebuyers may also want to look into state and national first-time buyer programs for assistance with down payments, closing costs or any fees associated with home buying.

First-time homebuyers often face unexpected roadblocks during the home search process. From sellers reversing course to property inspections revealing costly repair needs, things may get challenging at times; but by staying focused and remaining calm throughout this journey you are sure to end up living the home of your dreams in no time! Happy hunting!

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