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Tips for First-Time Buyers

Tips for First-Time Buyers


Tips for First-Time Buyers

Is this your first time looking into buying a home? Being a first-time buyer can be overwhelming if you are not properly prepared for costs and upkeep. Below are some great tips for first-time buyers to keep in mind when looking for their first home.

Pay Off as Much Debt as Possible

A house will cost a considerable amount of money, so you don’t want to be strapped for cash because of other debts you have. Pay off as much debt as you can before looking into buying a home for the first time.

Have an Emergency Fund

Once you are debt free, you want to start building an emergency fund to use on a rainy day. Unexpected costs may come up when you buy your first home, and you don’t want these costs to put you back in debt.

Make Sure You Know How Much You Can Afford

You also want to know how much you can afford on a house before putting in an offer on your dream home. The monthly cost of a home can be as much as, or even less than an apartment, but you are responsible for anything that breaks as well as all of the upkeep on the home. There are also taxes and homeowners insurance payments to consider.

Save for the Down Payment and Closing Costs

Save for a down payment to keep long-term monthly costs down. If you can’t put money down, there are options available for first-time homebuyers. Closing costs will be 3-4% of the amount the home costs, so don’t forget to have this as well.

Loan Preapproval

Once you have the down payment and closing costs saved, talk to a mortgage lender so see how much of a loan you can get approved for. Having a preapproval will let sellers know you are serious about purchasing a home.

Keep Within Your Price Range

Between using a real estate agent and research online, you can find the home of your dreams within your price range.

Do Your Research

Since owning a home is a long-term commitment, do enough research so that you are happy with the results. Find neighborhoods that suit you and your family and go to plenty of open houses to get a feel of what you want in a home and neighborhood.

Make an Offer

Make sure that when you do make an offer on a home, it’s within your budget. You want to be happy with your home and comfortable with how much it will cost.

Closing Preparations

If everything goes smoothly, a closing can take approximately 43 days, which gives ample time to read everything, so you know what to expect. Your real estate agent can answer questions you have so that there are no surprises.

First-Time Buyer Tips

Buying a house for the very first time can be stressful, but with the right plan in place, it can be a rewarding experience. First-time buyers will have the best luck following the tips above when purchasing their first home.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020