Buying a home and applying for a mortgage—especially if you’ve never done it before—can be scary and complicated. There are so many things to consider and steps to take. The best way to avoid expensive mistakes and frustration is to let a professional help you navigate the whole process.
Start Your Journey Online
Most people start shopping for homes and mortgages online. This gives you a sense of what’s available and what price range you’re in. But at some point, you’re going to want the assistance and advice of a live person.
Realtor or Mortgage Professional First?
- Realtor: Some buyers start with a realtor to begin looking at homes right away.
- Mortgage Professional: Others start with a mortgage professional to get pre-approved for financing and understand unexpected costs like appraisal, home inspection, property tax, transfer tax, etc.
The Importance of Pre-Approval
In competitive markets, being pre-approved for financing is essential. But finding out how much you qualify for is only half the story. A responsible mortgage professional will discuss your overall situation and make sure you can comfortably afford to borrow that much.
Consider Ongoing Expenses
There are always additional ongoing expenses to consider, such as:
- Repairs and maintenance
- New furniture and decor updates
- Homeowner association (HOA) dues
If you max out on the financing, you won’t have enough to cover these expenses.
Down Payment Myths
Many people delay homeownership because they assume they need to save 20% of the purchase price for a down payment. However, there are several options available that require much less:
Conventional Loans: If your credit score is healthy, you may qualify for a conventional home loan with a down payment as low as 5%.
FHA Loans: For first-time homebuyers, FHA loans are an excellent option, requiring as little as 3.5% down. This makes homeownership more accessible and manageable.
Down Payment Assistance Programs: Additionally, many state and local programs offer down payment assistance to eligible homebuyers. These programs can provide grants or low-interest loans to help cover the down payment and closing costs.
Moreover, the entire down payment can be a gift from a family member. According to a recent National Association of Realtors survey, 28% of first-time homebuyers sourced their down payment from a relative or friend.
Ready to Get Started?
If you’re considering buying and don’t know where to start, give us a call. As your local mortgage professionals, we’re here to simplify the process and make sure you get a home you can afford today and tomorrow!
