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First Time Buyer Tips

1. Don’t Skip The Preapproval

Many first time buyers skip the preapproval. This can ultimately cause you to lose the house you are interested in. Many sellers will accept the offer from whoever is pre-approved. Never skip the preapproval.

3. Be Sure You’re Ready To Commit To A Loan

Get a house when it’s right for you. Don’t get a house with high payments if you aren’t comfortable with it. Always be comfortable with the terms of the purchase.

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4. Start Saving Early

Save money for your house early! When you do you’ll have the opportunity to:

Put more money down which lowers your monthly payments and saves you thousands over time.

Pay the closing costs out of pocket if you are able. One of the many things that first time buyers forget is that there are closing costs for every house loan. These are fees that are charged for finalizing your loan. They are typically 2%-5%.

Pay for move-in expenses. Things like dishes, cups, cleaning supplies, furniture, and all other things you may need when you own your first home.

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5. Understand Your Loan Options

Always check your Loan Options. There are a variety of mortgages available with different down payment and eligibility requirements.

Another option you must consider is the time frame you want to payback the loan.

You will be able to decide whether you want a 30 year fixed-rate mortgage with a low monthly payment, or a 15 year fixed-rate mortgage with a lower rate, but a higher monthly payment.

– Conventional Mortgages

Allow down payments as low as 3% down. These loans are not insured by the government.

– FHA Loans

Allow down payments as low as 3.5%. They are also insured by the Federal Housing Administration.

– USDA Loans

These loans are for rural house buyers, and typically require no down payment. Check here for property eligibility.

– VA Loans

VA Loans do not require a down payment. These loans are for Veterans, current military service members, or a surviving spouse of a Veteran.

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7. List Your Needs, Your Non-Negotiables & Nice-To-Haves

It’s a good idea to list things you want in a house. Be ready to compromise. You may not get the house of your dreams the first time; but if you play your cards right, you could resell your home later and have more money saved for your dream home. In addition we offer loan products to do renovations at the time of purchase. If you need that extra bedroom, want to remodel the kitchen, or remodel that bathroom, talk to us about it on the front-end of your offer; we can help.

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8. Work With A Real Estate Agent

It’s better to work with a real estate agent. They have your best interests in mind. If you work without a real estate agent on your own, be CAREFUL. REMEMBER, the agent listing the home for sale is working for the best interest of the seller. You need an agent of your own to negotiate the deal on your behalf.

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9. Be Confident When You Submit An Offer

If something doesn’t feel right, ASK your lender!

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10. Hire An Inspector

Always hire an reputable home inspector to assess the house that you are considering. Hiring an inspector can prevent you from buying a home with serious issues and can help you negotiate repairs prior to purchase.

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11. Stick To Your Budget

Always make a budget. You need a plan that works for your family. Count the costs and consider the long term benefits of purchasing the best home your family can afford. We can help you understand those figures. 

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12. Research Home Buyer Assistance Programs

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13. Negotiate With The Seller

Don’t be afraid to negotiate with the seller. Sometimes you can knock off the market price of the home by $10,000-$15,000. If you can’t knock off pricing, tell them to include closing costs, or include repairs and appliances to the home.

Appliances aren’t free.