The Banker
Buying a home for the first time can be
overwhelming. As a first-time home buyer, there are so many decisions to make along
the way, from your agent, to your loan officer, to your loan product.
But-buying a home doesn’t have to be stressful! Making sure you are prepared
will put you miles ahead of other buyers, and help ease your mind during the
entire process. Following some simple do’s and don’ts is a great place to start
if you are thinking about buying a home for the very first time.
DO research your lenders
Your lender is likely going to be with you
throughout the entire home buying process, usually before you’ve even started
looking at homes! As a first-time home buyer, you want to find one that you
feel comfortable with. Don’t be afraid to get different quotes from multiple
different lenders, and decide which one is the best for you.
DO ask questions about all of the loan
programs offered
When you’ve chosen your lender, make sure you
ask about the pros and cons of each loan program for your situation
because Understanding
the Mortgage Process as a First Time Home Buyer is very
important. Your loan officer will likely give you options of the programs that
they think are a good fit for you, and some of them may be specific programs
designed for first-time home buyers. If you don’t fully understand something,
they will be more than happy to clarify and help you make the right decision.
DON’T only shop for a rate, without looking at
the over all cost
The interest rate on a loan is the cost of
borrowing the principle loan amount. This is always expressed as a percentage. This
is used to measure the cost of the over all loan. It includes the interest rate
and other costs. You will want to take both into consideration to make sure you
are getting the best deal.
DO make sure your credit is in good standing
There are loan programs offered to fit best credit
scores, but the higher
your score, the better deal you are going to get a first time home
buyer. Make sure your credit is in good standing before you start the home loan
process by making all of your payments on time, keeping your utilization low,
and not closing or opening any accounts until after the loan process is over.
DON’T empty your entire savings
Buying a new house can come with a lot of
unexpected expenses. You will want to make sure that your savings account isn’t
drained after closing on your loan, and that you’ve left a cushion for a rainy
day. As a first-time home buyer, you might not be sure what to expect after
closing on a home, so it’s best to leave yourself with some money in the bank
just in case.
DO find the right agent
Finding the right agent is a key component to
the home buying process, especially for first-time home buyers. They will be
able to help you draw up the contract when you are ready to make an offer, and
help you with getting the best deal on the home. Then they are able to act as a
go-between during your entire inspection and loan process, and can explain
anything that doesn’t make sense. Interview a few different agents to see which
one you think is a good fit for you.
DON’T shop for a house before you are
pre-approved
You want to make sure that you can afford the
homes you are shopping for, and for that reason many agents will require a
pre-approval letter before they start to show you homes. It’s a good idea as a
first-time home buyer to get this out of the way early on, and will make your
first time home buyer loan process easier.
DO determine how much you can afford
Your lender can help you with this, and let you
know the amount you are pre-qualified for. This way, you are only looking at
homes in your price range. First-time home buyers might not know exactly what they want
or can afford, and your lender and agent can help you with both of
these things!
DO get adequate insurance
Insurance will be required by your lender, and
if you aren’t sure where to start, ask your agent or loan officer for some
recommendations. They can connect you with insurance agents that they work with
often, and make sure you are getting a good deal on your policy. Now a days banks
provide inbuilt insurance plans for the property and owner which covers loans.
DO ask questions to make sure you fully
understand the home inspection and loan process
If there is anything throughout the home
buying process that you don’t fully understand, don’t be afraid to ask
questions! Your agent and loan officer can help explain anything that you need
them to. For first-time home buyers, they are more than used to it, and after
all, that’s part of their job!
DON’T buy new things for your home right
before closing
When being a
first-time home buyer it is exciting and fun while it can be
tempting to go out and splurge on new furniture for your new house. Wait for
some time to close the deal.
DO find the perfect home for you
Your agent can help you find the perfect home.
Don’t settle for something you aren’t sure you want-a home is probably the
biggest purchase you will ever make! You deserve to get exactly what you want,
and your agent is there to help you find it.
Being a first-time home
buyer can feel a little daunting. You are starting the process
for something that you’ve never done before, and it’s a big deal! Finding a
good agent and loan officer to help guide you through the process and answer
your questions can be the difference between a stressful and a smooth home
buying experience. Following the tips above will help set you up for success,
and put you ahead of the game. And remember, at the end of the day, the goal is
to get into the home of your dreams!
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