As a first-time buyer, you will need funds set aside to make a down payment on your new home. It is recommended to have approximately 20% of the purchase price available for down payment and expenses. However, there are mortgage programs that will allow you to put down a significantly lesser amount, for instance FHA 3.5% and USDA "No Money Down." There are also programs that can help you make a down payment, there are usually income qualifications. Know your options before you get started.
Purchasing your first home is one of the biggest financial decisions you will make, and you want to be prepared. Gather necessary documents, such as your credit report, and identify any problems with your finances so you can fix them ahead of time. There are many free resources to check your credit report.
Credit Karma and annunalcreditreport.com to help ensure you’re credit ready. We also have a credit service to help you get your credit on track to purchase your new home!
As a first-time home buyer, it’s important to hold off on any large credit purchases, such as a lease or car loan, as it can impact your debt-to-income ratio. This number will directly affect whether you qualify for a loan. If possible, wait to make any large purchases with credit.
To make the buying process easier, know where you stand with lenders. If you have a credit score of 720 or above, you can shop around for a loan with the lowest interest rate. However, if you have a lower credit score (580+), you may be restricted to certain financing options and sometimes higher rates. There are still many promising options available. Shop lenders to determine the best option for you.
Some lenders require your down payment must be in your account for a set amount of time. It’s crucial to know these conditions to ensure that the closing on your dream home isn’t delayed. Be sure to check with your lender.
If you’re interested in owning a home in a specific area, connect with a Property Bar real estate agent as all are familiar with that area. In addition, our agents will offer invaluable experience and knowledge about neighborhoods, schools, new developments, and any issues you should know about.