6 Things Every First Time Home Buyer Needs to Know
Homeownership is rewarding and complicated but it’s also a big investment.
Knowing more will help you make informed decisions about your home. We want to ensure it is as simple and enjoyable as possible, which is why we’ve broken it into six achievable steps.
- Know what you can afford
First, you need to find out how much money your lender will let you borrow. You need to get pre-qualified and learn how lenders determine if they can give you a loan. We can provide insight on establishing credit and making your finances work for you. Get an idea of how much you can afford with our mortgage calculator.
- Costs that come with buying a home
For first-time homebuyers, we have some unfamiliar territory here: there are more costs associated with buying a home than just the house payment and realtor fees. Before you even purchase, you’ll need cash on hand for your down payment and earnest money, but don’t let the 20% myth scare you. There are loan programs available with as little as 3.5% or even zero down!
- Getting the Mortgage That’s Right for You
When it comes to home financing, there’s no one-size-fits-all approach. There are a variety of loan programs available to meet your specific financial situation, and you should talk to your lender about which one is right for you. These include Conventional, FHA Loans, USDA Loans, and Construction Loans to start building your own home.
- The Mortgage Application Process
Once you submit your loan application, it will trigger multiple steps that will happen behind the scenes before your loan is approved. Download our homebuyer’s guidebook to discover each of these steps in full detail and to find out the top 5 things NOT to do during this loan process.
- Closing Time
Closing time is when you finalize your contract and sign a lot of documents to make your homeownership official. There are many important steps to take before closing day to ensure your experience is smooth and stress-free. These include getting a home inspection, selecting a homeowner’s insurance policy, reviewing the closing disclosure, and more.
- Moving In
Once you’ve closed on your home, you can finally move it! Make sure to file your closing packet in a safe place.
We hope to be your go-to resource for your own personal homeownership adventure. It’s quite the trek- but you don’t need to do it alone. Our homebuyer’s guidebook walks you through each of the steps in great detail. If you have any questions along the way, our experienced lenders would love to help.
Lincoln Savings Bank, Equal Housing Lender