If this is your first time buying a home, it’s natural to feel nervous or overwhelmed. Fortunately, our team at Harbor Mortgage Company is here to give you a few tips to help make the process easier and less intimidating.
- Know the Costs – Our first tip for first-time home buyers is to research the costs involved and to be prepared for them. First, you will need to save up a down payment of between 5 and 15% of the total house price—so if you are looking at $300,000 homes, you’ll need $15,000 for a 5% down payment. You’ll also need to worry about closing costs, which are typically 2-6% of the total price. Finally, make sure to account for move-in expenses in your budget.
- Explore Mortgage Options – We also encourage first-time home buyers to research the different types of mortgages, such as conventional mortgage loans, FHA loans, and VA loans. Our experts can go over the available options with you, helping you identify which programs you qualify for and making sure you have the information you need to find the right choice for your needs.
- Get Pre-Approved – Another smart move for any home buyers, but especially first-timers, is to get a preapproval letter from a lender. Showing this document to sellers will help you get your foot in the door, as it shows the lender is willing to loan you a certain amount of money based on your credit history.
- Consider Housing Types – We also encourage first-time home buyers to think about what kind of home is best for their needs. For example, you may find that a condo is a better fit for what you are looking for than a traditional house.
If you want more guidance on buying your first home, we encourage you to reach out to our team today.