The First 5 Things First-Time Homebuyers Must Do

1. Create a Budget

Lenders can tell you how much of a mortgage you qualify for, but only you know how much you are comfortable with spending every month on a mortgage payment. There are many online tools available to track your spending and help you create a budget.

2. Save for a Down Payment

When buying your first home, the minimum down payment requirement is 3%. If you are an eligible veteran and qualify for a VA loan, you can purchase a home with a 0% down payment. Closing costs when purchasing a home will generally run about 3% of the purchase price of the home. So, between the down payment and closing costs, first-time home buyers who are not eligible veterans will need to have at least 6% saved.

3. Determine Your Needs and Wants in Your First Home

The vast majority of first-time home buyers will have a budget when purchasing a home. Make a list of what you need in your first home versus what you want in your first home to assist you in your home search.

4. Get Pre-approved

Before heading out to look at homes, you will want to get pre-approved for a mortgage so you know how much you qualify for on a home purchase. Be sure to work with a lender who verifies your income, your down payment, and credit. Your pre-approval will be good for 4 months.

5. Find a Realtor

When looking for a realtor to represent you, find an experienced realtor who has good communication and knowledge of the local market. Consider asking family, friends, or your lender for referrals and interview a few different realtors to find the realtor that is best suited to help you with your home purchase.

Ready to take the next step or ask a question?

Brad Huegel - Mortgage Supervisor: brad.huegel@sharepointcu.com | (952) 988-8187