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FAQs for First-Time Homeowners
You’re ready to buy your first home, but have come to realize how much you don’t know. Let’s answer four of the most frequently asked questions from first-time homebuyers.
1. How do I know I'm ready to buy a home?
There is not a one-size-fits-all approach to home-buying. There are many factors to consider if you are looking to buy your first home. If you have a good credit score, money saved up for a down payment and closing costs, and make a stable income, you are probably ready to buy your first home. However, buying a home also requires a knowledge of home improvement and maintenance.
2. What should I expect during the home-buying process?
There are usually 6 steps for a first-time homebuyer to take when buying a new home.
Get mortgage preapproval
Find a real estate agent
Get a home inspection
Gather paperwork for closing
Prepare for closing
Once your loan records, get your keys
3. How much do I need to buy a home?
While this amount will vary from person-to-person, there are a few things to consider when trying to save to buy your home. You will need enough to cover a down payment and closing costs. Standard loan program minimum down payments range from 0% to 3.5%. Closing costs typically run between 2% and 6% of your total loan amount and often include one-time lender and title fees related to getting approved for a mortgage, and the ongoing costs of your home such as property taxes, homeowners insurance and homeowners association (HOA) fees.
4. Is my credit good enough to buy a home?
A higher credit score often leads to a smoother loan approval, and a much lower interest rate and monthly payment. Conventional lenders typically require a minimum 620 score, but they’ll likely reward you with a lower rate if your score is 740 or higher.
As I'm sure sure you've figured out by now, there is so much more to buying a home thanm meets the eye. While we tried to answer the most common questions we've been asked, we know you probably have more.
No matter where you are in your journey, we hope you'll consider allowing us to partner with you to find the best home for you! Fill out the contact form below or call us to schedule an appointment to learn how we can help you!