First Time Buyer

Let’s talk about the financial aspects you need to consider.

First up, the down payment. Depending on the type of mortgage and lender you choose, your down payment requirement can vary. Some loans designed for first-time buyers with excellent credit only need as little as 3% down. But even a small down payment can be a challenge to save. For instance, if you’re eyeing a $300,000 home, a 3% down payment would be $9,000. Don’t worry, though! You can use a handy down payment calculator to set a goal and start saving. Plus, you can make it easier on yourself by setting up automatic transfers from your checking to savings.

Now, let’s talk closing costs. These are the fees and expenses you’ll need to pay to finalize your mortgage. Typically, they range from 2% to 6% of the loan amount. So, for that $300,000 loan, you could be looking at an additional $6,000 to $18,000 on top of your down payment. But here’s a pro tip: in a buyer’s market, you can negotiate with the seller to cover a portion of your closing costs. And don’t forget to shop around for the best deals on home inspections and other related expenses.

Next is your budget and pre-approval. What you can afford – it’s important to know and how much of a loan you can qualify up to.     Getting pre-approved is an essential step in searching for your new home.  Ask me for a list of top mortgage lenders.

When it comes to mortgages, there’s a variety of options to choose from, each with its own down payment and eligibility requirements. Let’s dive into the main categories:  First up, we have conventional mortgages. These are the most common type of home loan and aren’t guaranteed by the government. Some even offer sweet deals for first-time buyers, requiring as little as 3% down.   Next on the list are FHA loans. These gems are insured by the Federal Housing Administration and allow down payments as low as 3.5%. Perfect for those looking for a single family.  Last but not least, we have VA loans.

Finally you need to consider closing costs.  They include a whole bunch of fees and expenses that need to be settled. We’re talking about things like title insurance searches, taxes, HOA fees, home inspections, and real estate attorney fees. On average, closing costs for buyers range from around 2% to 6% of the loan amount. So, if you’re getting a $300,000 home loan, you’ll be shelling out between $6,000 and $18,000 in closing costs, on top of your down payment.

Ready to make your dream home a reality? Let’s get started on this exciting journey together!