10 Tips For Buying Your First Home
Get Pre-Approved: This will help determine how much you qualify to borrow and what you’re comfortable paying.
Check your credit: Even if you have blemishes on your credit, you may still be able to qualify for a loan. Your loan officer can educate you on the many factors involved.
Determine your down payment: Requirements vary depending on the type of loan, loan amount, and available down payment assistance programs.
Save for closing costs: They may include, but are not limited to, title policy insurance, mortgage insurance, fire/flood/homeowners insurance, recording fees, and loan origination fees.
Explore ways to lower your rate: You may be able to pay points (fees charged by a lender; one point is equal to 1% of the loan amount) at the beginning of the loan to lower the interest rate charged.
Decide between fixed or adjustable: Depending on your short- and long-term goals, you may wish to take advantage of a fixed rate loan or one that adjusts periodically over time.
Consider conventional and government loans: While conventional loans may feature fixed or adjustable interest rates, FHA, VA, and USDA loans typically involve a fixed rate.
Take advantage of first-time homebuyer programs: Ask your mortgage expert about options that are customized for those who have not previously owned a home.
Factor in mortgage insurance: Home loans with a down payment of less than 20% will most likely require mortgage insurance.
Attend first-time homebuyer counseling: Learn about selecting a home, realtor services, homeownership responsibilities, saving for a down payment and other essential elements.
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