Joe Dumond, Broker
Sutton Group-Masters Realty Inc

first time home buyers guide

Buying a home for the first time is an exciting but often overwhelming process. Here’s a general guide to help you navigate through it.

Assess Your Financial Situation

  • Credit Score: A good credit score is crucial for securing a mortgage with favorable terms. Check your score and improve it if necessary.
  • Savings: You'll need savings for a down payment (typically 3-20% of the home price), closing costs (about 2-5% of the loan amount), and moving expenses.
  • Budget: Determine how much you can afford. A common rule is that your monthly housing costs (including mortgage, taxes, and insurance) should not exceed 28% of your gross monthly income.

Get Pre-Approved for a Mortgage

  • Pre-Approval: This process involves a lender reviewing your financials and determining how much they’re willing to lend you. It will give you a clearer idea of your budget and shows sellers that you’re a serious buyer. 
  • Shop around: Compare mortgage rates from different lenders to get the best deal.

Choose the Right Type of Mortgage

  • Fixed-Rate vs. Adjustable-Rate: A fixed-rate mortgage has the same interest rate for the life of the loan, while an adjustable-rate mortgage (ARM) has a variable rate after an initial fixed period.
  • Loan Term: Common terms are 15 or 30 years. Shorter terms have higher monthly payments but less interest over the life of the loan.

Find A Real Estate Agent

  • Experienced Agent: Look for an agent with experience working with first-time buyers. They can guide you through the home-buying process and help you avoid common pitfalls.
  • Negotiation: A good agent can also help you negotiate the best price and terms.

Start the Search for your new home

  • Make a List: Identify your must-haves (e.g., number of bedrooms, location) and nice-to-haves.
  • Attend Open Houses: Explore different neighborhoods and types of homes to see what fits your needs and budget.
  • Be Ready to Act: In competitive markets, homes can sell quickly, so be prepared to make an offer when you find the right one.

Make an Offer

  • Offer Price: Your agent will help you determine a fair offer based on comparable homes in the area.
  • Contingencies: Include contingencies in your offer, such as financing, inspection, and appraisal. These protect you if something goes wrong.

Home Inspection

  • Hire an Inspector: A professional home inspection can uncover potential issues with the property. You can negotiate repairs or a price reduction based on the findings.

Closing the Deal

  • Final Walk-Through: Before closing, do a final walk-through to ensure the home is in the agreed-upon condition.
  • Closing Costs: Be prepared to pay closing costs, which may include loan origination fees, appraisal fees, title insurance, and more.
  • Sign the Papers: Review all documents carefully, and once signed, you’ll officially be a homeowner!

Move In!

  • Set Up Utilities: Arrange for electricity, water, internet, and other services.
  • Change Your Address: Notify relevant parties of your new address, including the post office, banks, and employers.
  • Congratulations! You've made a big step.  Enjoy Your New Home.

Tips for Success

  • Stay Within Your Budget: It’s easy to get carried away, but stick to what you can afford.
  • Emergency Fund: Keep a reserve fund for unexpected repairs or expenses after you move in.
  • Patience is Key: The process can be long and stressful, but finding the right home is worth the wait.

 If you need more personalized advice or have any questions, feel free to ask!