Advice for First Time Homebuyers

Buying Your First Home?

Exciting times are ahead, but it's easy to feel overwhelmed. First-time homebuyers often aren't sure where to start. Kick off your journey early with thorough research. Learn what pitfalls to avoid and enjoy each milestone. After all, you only buy your first home once!

5 Essential Tips for First-Time Homebuyers

1. Save for a Down Payment

Aim for 20% to avoid Private Mortgage Insurance (PMI) but explore lower down payment loans like Conventional (3%) and FHA options. A higher down payment can lower your monthly mortgage payment.

2. Determine Your Budget

Use a home affordability calculator to figure out how much home you can afford. Then get pre-approved by your mortgage lender to know your price range and potential interest rate.

3. Check Your Credit

A higher credit score can lead to better interest rates. Consider improving your score before house hunting.

4. Save for Closing Costs

Expect to pay 3-4% of the purchase price in closing costs. Your lender will provide the exact amount needed.

5. Explore Assistance Programs

Look into state and local First-time homebuyer programs for down payment assistance and discounted interest rates.

Examples of Down Payment Assistance Programs

• Community Heroes: For law enforcement, first responders, medical professionals, educators, and veterans.
• Recent College Grads: Popular in states with large graduate populations.
• Underrepresented Programs: Promotes homeownership for everyone, in every community.
• Historic Areas: Grants and loans for restoring historic homes.

5 Mistakes First-Time Homebuyers Should Avoid

1. Not Knowing Your Budget

Before house hunting, use our affordability calculator to determine what you can afford.

2. Assuming You're Ready

Consider all costs, including insurance, taxes, and maintenance.

3. Skipping Pre-Approval

Get pre-approved by a lender to know your price range and make a financial decision.

4. Ignoring First-Time Buyer Programs

Research local programs that may offer down payment assistance.

5. Depleting Your Savings

Don't use all your savings for a down payment. Keep a rainy-day fund and consider down payment assistance programs.

Ready to Get Started?

We can help you find programs in your area and answer all your questions. Visit our guide for first-time homebuyers or contact us today.