Learn all about it!
Buying your first home is a big deal! There is a TON to consider, which can be overwhelming and exciting at the same time for a first time homebuyer. It’s OK, because by learning and understanding the overall big picture of the homebuying process, including down payment options, the importance of credit scores, the types of mortgages available, and more, you’ll be on the right path to becoming a smart homebuyer!
#1 Most Important Place to Start – Get Pre-approved!
Excited to start home shopping and looking at properties? Sure! But one of the first questions your real estate agent will ask you is: “what’s your price range?” Do you know how much you can afford? And even if you do have an idea, do you know if a mortgage lender will loan it to you? Before you start shopping to make the biggest investment of your life, find out how much you can afford by getting pre-approved.
Meet your new friends: the mortgage pro and real estate agent
The Mortgage Loan Originator and Real Estate Agent you work with will become your new best friends because you’ll be sharing with them your financial history, income, debts, and more. Evaluate and be choosey with who you decide to go with (hint hint, give us a call!), and then bare it all, and be unafraid, they’ve seen it all. That being said, there are things you can do to start preparing for a mortgage that will help drive the conversations with your new friends.
Understand the Basic Home Loan Programs
You don’t have to be a whiz when it comes to mortgages, after all that’s why you’re working with a Mortgage Loan Originator, but it doesn’t hurt to have a basic understanding of the mortgage programs available. Read up a bit, and if you still have questions, don’t be afraid to ask!
Don’t Fear the Down Payment
In MOST cases, you need to have a chunk of money to put towards your down payment. Once again, getting pre-approved will help you figure out what this number looks like. But did you know that there are down payment assistance programs available? Oh yes, there are many offered at your local state, county, and city levels, specifically for first time homebuyers. You can also use “gifts” towards a down payment, as in someone can contribute to help you buy your first home!
Reminder to first time homebuyers: Hang on to the dream!
Owning a home means hosting dinner parties, interior decorating, the total elimination of landlords, DIY home improvement projects, and all the other fun domestic duties that come along with being an official homeowner. When things get tough, cling to the dream!
And just know, we’re a huge fan of first time homebuyers! Got questions? Want to get started? Give us a call!