Trying to navigate the world of home loans as a first time homebuyer can seem complicated. To try and make it simpler for you and to make the process a bit smoother, we’ve put together a quick selection of tips for buying your first home and choosing the right home loan.
• While you should save for a down payment as early as possible, you do not need to panic if you cannot afford a large down payment. You only need to put 3.5% down with an FHA loan, and some conventional mortgages only require 3% down. It is also possible to put zero down with a USDA or VA mortgage.
• When calculating how much home you can afford, do not forget to account for property taxes and other maintenance costs. The cost of owning a home goes far beyond the mortgage principal and interest.
• If you are selecting a long loan term (which is common among first time homebuyers), try not to let that tempt you into purchasing more home than you can reasonably afford. Even though the monthly mortgage payments may be within your range, other associated costs (such as the maintenance costs discussed above) may not be.
• Get pre-approved. Doing this will help you shop for homes that you can actually afford, and also may assist you with getting a buyer to accept your offer.
• Before you apply for a mortgage, check your credit score so you know what types of rates you can expect.
• If you haven’t, order your credit report as well so that you can understand the data which is used to calculate your score and check it over for accuracy. If you need to make corrections, you can contest erroneous entries and improve your score.
• Know your own timetable for purchasing a home, but also familiarize yourself with how long it typically takes to close.
• Pick a mortgage company in Virginia to work with which always puts your best interests first and offers you top-notch customer service and communication.
We hope that you found these first time homebuyer tips helpful. If you are looking for further guidance as you shop for your first home, please give us a call today at (540) 838-5868. We work with customers in the Blacksburg area and throughout Virginia, and would love to connect you with the ideal loan for purchasing your first home.