Thinking about buying your first home? Before you dive in, it’s crucial to be well-prepared. With nearly two decades in the mortgage and real estate industry, we’ve encountered many eager home shoppers who, despite their enthusiasm, weren’t fully prepared for the process. If you’re a first-time home buyer, take a moment to pause, get organized, and learn from our experience.
1. Understand Your Budget:
- Don’t start looking at homes until you know what you can afford.
- Get your credit checked by a lender to understand your creditworthiness for a home loan.
- Provide accurate income details by gathering the last two years of tax returns, W-2s, and recent pay stubs.
- Assess your savings, gifts, or the need for first-time home buyer down payment programs.
2. Prequalification and Home Shopping:
- Get prequalified with a lender before starting your home search.
- Utilize online tools to explore homes within your budget.
- Create a list of must-haves and prioritize essential features.
- Find a reliable real estate agent, either through recommendations or by contacting local real estate associations.
3. Found the Home? What to Expect:
- After finding a suitable home, be prepared for inspections and appraisals.
- Lender appraisal establishes the home’s value but may not uncover all potential issues.
- A recommended home inspection can help identify defects and concerns.
- Consider additional inspections for pests, roofing, electrical, or plumbing issues.
4. Under Contract: Document Submission and Closing:
- Once under contract, expect a 30-45 day closing period.
- Respond promptly to requests for documents from the lender.
- Address any issues that arise during the loan review process with honesty.
- Be aware that additional time may be needed for first-time home buyer assistance programs or grants.
5. Closing and Beyond:
- Sign paperwork at the closing table and celebrate becoming a first-time home buyer.
- Recognize that homeownership brings responsibilities—be prepared for unexpected repairs.
- Set aside funds for potential repairs and consider home warranties for added protection.
- Embrace the joy of building a life in your new home.
Congratulations on your journey to becoming a first-time home buyer! Enjoy the experience and the new chapter in your life.
