First-Time Home Buyers

Before you start searching for your home, it's essential to consider several factors:

• Location: Identify neighborhoods or communities where you'd like to live.
• Home Style and Features: Determine the type of home you want, whether it’s a condo, townhouse, or single-family home, and decide on the number of bedrooms, bathrooms, and other features you need.
• Special Requirements: Consider if you need specific rooms like a home office or if you want amenities such as a yard or pool.
• Lifestyle Considerations: If you frequently entertain guests, you may want a home that’s suitable for hosting.

When preparing to buy a home, start saving early to cover the following costs:

• Down Payment: Depending on the type of mortgage and lender, first-time homebuyers with good credit might only need to put down as little as 3%. For example, on a $300,000 home, this would amount to $9,000.
• Closing Costs: These typically range from 2% to 5% of the loan amount. Using the same $300,000 example, closing costs could be between $5,820 and $14,550. In some cases, you may be able to negotiate with the seller to cover a portion of these costs.
• Move-in Expenses: Set aside funds for immediate home repairs, upgrades, and furnishings once you’ve purchased your home.

Your credit score plays a significant role in determining your mortgage eligibility and the interest rates you’ll be offered. To improve your credit:

• Check Your Credit Report: Dispute any errors that could negatively affect your score.
• Pay Bills on Time: Keep your credit card balances low and make timely payments.
• Keep Credit Cards Open: Closing a card can reduce your available credit and lower your score.

A home inspection is crucial to assess the condition of the property. A professional inspector will evaluate the structure and mechanical systems, helping you make an informed decision. Remember:

• Understand What’s Included: Standard inspections may not cover radon, mold, or pests, so ask about any additional inspections you might need.
• Be Present: If possible, attend the inspection to learn more about the property and ask questions directly.