Buying your first home is an exciting milestone, but it can also feel overwhelming. From budgeting to choosing the right home, there are many important decisions to make. To help you navigate the process with confidence, we’ve compiled a list of key tips for first-time homebuyers. These tips will guide you from start to finish, ensuring that your home-buying journey is as smooth as possible.
1. Know Your Budget and Get Pre-Approved
Before you start looking at homes, it’s crucial to know how much you can afford. Take a deep dive into your finances, including your income, savings, and debts, to determine a comfortable budget. Once you have a budget in mind, the next step is getting pre-approved for a mortgage. Pre-approval shows sellers that you’re serious and ready to make an offer.
Tip: Getting pre-approved with AXS Mortgage is quick and easy—plus, we offer 0% down payment options for qualified buyers!
2. Consider Additional Costs Beyond the Mortgage
It’s easy to get caught up in the excitement of purchasing a home, but don’t forget about additional costs beyond your mortgage. Expenses like property taxes, home insurance, closing costs, and potential maintenance should be part of your financial planning. Budget for these items to avoid surprises down the road.
Tip: Use a mortgage calculator to estimate these costs and get a clearer picture of your monthly obligations.
3. Save for a Down Payment and Closing Costs
Although some loan programs offer low or 0% down payment options, saving for a down payment can help reduce your monthly payments and interest rate. Aim to save at least 3-5% of the home’s price. Also, set aside funds for closing costs, which are typically 2-5% of the home’s purchase price.
Tip: Look into down payment assistance programs to help you get into your first home with less upfront cost.
4. Know Your Loan Options
There are various loan options designed to help first-time homebuyers, each with its own benefits. Understanding the different types of loans available will help you make an informed decision:
•FHA Loan: Great for buyers with lower credit scores or minimal savings for a down payment.
•VA Loan: For veterans and active-duty military members, offering 0% down and no PMI.
•Conventional Loan: Ideal for buyers with strong credit and the ability to put down 20% to avoid PMI.
•USDA Loan: Designed for buyers in rural areas with 0% down payment requirements.
Tip: Work with a knowledgeable mortgage broker, like AXS Mortgage, to explore all your loan options and find the best fit for your situation.
5. Hire a Knowledgeable Real Estate Agent
A real estate agent who understands the local market is a valuable asset for first-time homebuyers. They will help you find homes that fit your needs and budget, negotiate the best price, and guide you through the entire buying process. A great agent will also keep you informed about the current housing market trends, ensuring you make a competitive offer.
Tip: Ask for referrals from friends or family, and make sure your agent has experience working with first-time buyers.
6. Be Patient and Flexible
The home-buying process can sometimes take longer than expected, especially in competitive markets. Be patient and flexible in your home search, and understand that finding the perfect home may require some time. Don’t rush into a purchase simply because you feel pressure—take the time to find a home that truly meets your needs.
Tip: Create a list of must-haves and nice-to-haves, so you can prioritize your home search while staying realistic about what’s available.
7. Get a Home Inspection
Before closing on your first home, it’s essential to schedule a home inspection. An inspection helps identify any potential issues with the property, such as structural problems, plumbing, or electrical issues. This can save you from costly repairs after moving in and give you peace of mind about your investment.
Tip: If any major issues are found, use the inspection report to negotiate repairs or request a lower purchase price before finalizing the deal.
8. Don’t Make Major Financial Changes Before Closing
Once you’ve started the mortgage process, avoid making any major financial changes until after closing. Opening new credit cards, making large purchases, or changing jobs can impact your loan approval. Lenders will check your credit and financial status before finalizing the loan, so it’s best to keep your finances steady during this time.
Tip: Wait until after closing to make large purchases, like new furniture or appliances for your home.
Ready to Become a Homeowner? Let AXS Mortgage Help You!
Buying your first home is a major milestone, and at AXS Mortgage, we’re here to make the process easier. Our team of experts will guide you every step of the way, from pre-approval to closing. Whether you’re looking for low rates, 0% down payment programs, or expert advice, we have the solutions you need.
Contact us today to get pre-approved and start your homeownership journey!
