First-time Homebuyer Tips
Buying your first home can be an incredibly exciting, yet nerve-wracking experience. Purchasing a home is a huge investment and is very rewarding. While your new home will be where you create many wonderful memories with family and friends for years to come, there will also be no landlord to call when the kitchen faucet starts to leak! But rather than pay rent to someone else, you'll be building equity in your home and will have a beautiful piece of property to take pride in and take care of.
At River Hills Properties LLC, we love nothing more than helping first-time homebuyers find the homes of their dreams. Our agents are here to assist you every step of the way, making sure you're completely comfortable with this life-changing purchase.
To help get you started on the journey, we've compiled a list of helpful tips for new home buyers to consider along the way.
Pay down debt
By paying down your existing debt, you'll be helping one of the key factors lenders look at when making a decision on your pre-approved loan amount. That will end up saving you money on finance charges too. The less debt-to-income ratio you have will benefit your loan and mortgage rate.
Have a down payment
The more the better. While 20% is a common amount for a down payment, it's not a requirement. BUT, the more you put down, the more you will save in the long run and it will increase your chances of a more favorable loan.
Know your budget
Not just how much you can afford on the purchase of a new home, but what are your monthly expenses? Your home loan will be a payment you have to include in your monthly budget for years to come so having an idea of where your money goes each month will help you plan.
Explore different types of loans and rates
Loans come with fixed or adjustable rates and you can borrow for as much as 30 years down to 20 or 15 years. Researching each option will help you decide which is best for you and your budget.
Compare mortgage rates
You don't have to work with the first lender that pre-approves you for a loan. Take the opportunity to apply for loans from various lenders to compare rates. Even the difference of a half a percentage point can save you thousands of dollars over the course of the loan, depending on the price of the house.
Have one done and be present for it. Ask questions and make sure the inspector can get to every part of the house. This is your chance to learn about anything the seller may not have disclosed while getting an expert opinion on various parts of the home.