top of page

First Time Home Buyer Guide




Buying Your First Home


Are you thinking about buying your first home. Here are some things to considers.


How's your credit?

Do You have money saved for a down payment?

Do you know which Mortgage Programs is right for you?


Start Cleaning Your Credit.


Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Take these steps to strengthen your credit score to buy a house:


  • Get free copies of your credit reports from each of the three credit bureaus — Experian, Equifax and TransUnion — and dispute any errors that could hurt your score.

  • Pay all your bills on time, and keep credit card balances as low as possible.

  • Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.

  • Track your credit score.

Start Saving For Your Down Payment


Here are the main costs to consider when saving for a home:


  • Down payment: Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Use a down payment calculator to decide a goal, and then set up automatic transfers from checking to savings to get started.

  • Closing costs: These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around.

  • Move-in expenses: You'll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades and furnishings.

Research first-time home buyer assistance programs and which lender/mortgage option is right for you


A variety of mortgages are available with varying down payment and eligibility requirements. Here are the main categories:


  • Conventional mortgages are not guaranteed by the government. Some conventional loans targeted at first-time buyers require as little as 3% down.

  • FHA loans are insured by the Federal Housing Administration and allow down payments as low as 3.5%.

  • USDA loans are guaranteed by the U.S. Department of Agriculture. They are for rural home buyers and usually require no down payment.

  • VA loans are guaranteed by the Department of Veterans Affairs. They are for current and veteran military service members and usually require no down payment.


You also have options when it comes to the mortgage term. Most home buyers opt for a 30-year fixed-rate mortgage, which is paid off in 30 years and has an interest rate that stays the same. A 15-year loan typically has a lower interest rate than a 30-year mortgage, but the monthly payments are larger.


Oh! Don't forget to save for home inspection this is something we wasn't aware of when we bought our home.


A home inspection is a thorough assessment of the structure and mechanical systems. Professional inspectors look for potential problems, so you can make an informed decision about buying the property. Here are some things to keep in mind:


  • Standard inspections don’t test for things like radon, mold or pests. Understand what's included in the inspection and what other inspections you might need.

  • Make sure the inspector can get to every part of the house, such as the roof and any crawl spaces.

  • Traditionally the buyer attends the inspection. By following the inspector around you can get a better understanding of the home and ask questions on the spot. If you can't attend the inspection, review the inspector's report carefully and ask about anything that's unclear.


Commentaires


© 2024 Sage by spiced life conversation LLC Proudly created with Wix.com

Visit our Other Site: www.spicedlifeconversation.com

  • LinkedIn
  • Twitter

Disclaimer: We are not licensed attorneys in the State of Georgia, and we may not give legal advice or accept fees for legal advice.  If you need assistance in deciding whether documents are appropriate for notarization, please contact a licensed attorney to determine applicability. Furthermore, you assume all responsibility for the accuracy of the information provided and must check the accuracy of information presented in documents, forms, etc. By the rules of the State of Georgia; when providing notary service, we may as notaries public charge no more than $5 per notarial act. For the services provided here, charges are based upon this rule. Any additional fees for service are unrelated and will be quoted upon inquiry. A notarial act includes, but is not limited to 1 complete signature, stamp, and/or seal from the notary, swearing in or oath, acknowledgment forms provided by the notary, and their signature and stamp and/or seal from the notary. We are extremely happy to provide an additional service, mobile. This service enables customers to schedule notaries from their homes or offices on weekends. A mobile fee is applicable and separate from a notarial fee.

Document prices are subject to change without prior notice.

bottom of page