Tips for First-Time Homebuyers
Buying your first home is an exciting, chaotic process. However, you can make it a little easier by understanding some basic tips about saving, loans and buying.
Preparing to Buy
Before you jump into the search for your perfect house, you should make some preparations:
- Start saving early:In addition to the base costs of down payments and moving expenses, the path to homeownership is often full of other expenses, including closing costs and inspections.
- Decide how much house you can afford:Consider using a tool like our mortgage calculator to estimate what you can pay based on your current income and debts.
Mortgage Selection Tips
When deciding the type of loan you’ll take out, you have several options:
- Conventional mortgages:These loans are unprotected by the government. They typically require about a 3% down payment.
- FHA loans:The Federal Housing Administration insures these loans for buyers with low credit scores or low savings.
- USDA loans:The S. Department of Agriculture insures these loans. In some rural regions, homebuyers can secure a 0% down payment with this type of mortgage.
- VA loans:The S. Department of Veteran Affairs insures these loans. Eligible buyers can get move-in ready homes for a $0 down payment.
- First-time homebuyer assistance programs:Many states or cities offer programs for first-time homebuyers.
Home Buying Tips
Now that you’re ready to buy, these tips will help you get the most out of the buying process!
- Choose a real estate agent you trust: Having a good relationship with your agent is essential for an excellent house-buying experience. A good agent will dedicate themselves to helping you find your dream home.
- Pick the best house and neighborhood: Consider the area where you want to live after determining your needs. For example, how close do you want your neighbors to be? What about a busy highway? Or a dog park?
- Stick to your budget: Even if you’re approved for a certain amount on loan, remember that you can spend less than that.
- Get the home inspection:Inspections can help you see any issues with your home that the seller did not specify. It can also help you negotiate your price.
- Buy adequate home insurance:Lenders will require that you buy homeowner’s insurance. Still, you may want to look into getting more insurance than is strictly necessary to cover any issues that arise.
Get More Financial Advice From Fort Pitt Capital
If you’re looking for financial assistance through the homebuying process, consult with Fort Pitt Capital today. Our only goal is to do what we believe is best for our clients. Call us at 1-800-471-5827 or submit a contact form online.