Thinking about buying your first home? Congratulations! This is a very exciting time! But it can also be kind of confusing, especially since you’ve never done it before. But don’t worry! My 5 tips for first time homebuyers will help you get started and assist you throughout this process!
Now is not really the time to be buying a new car or opening a new line of credit because little changes in your credit score can have a big impact when it comes to the type of loan you can get. Your credit score will affect your…
As you can see, having a high credit score can help save you a lot of money when buying a house. My best advice to you is to maintain your credit score throughout the whole home buying process and wait on big purchases until after you have closed on your new home!
Imagine this, you decide you want to buy your first home. You are so excited and the first thing you want to do is start looking! Then, after months of searching you finally find the perfect home. It has the pool you’ve always wanted, enough room for the whole family, and it is everything you have ever dreamed of! Then you find out, the home is out of your price range. Absolutely heartbreaking!!
Unfortunately, this happens to a lot of first time homebuyers, but I’m here to help you avoid this mistake. Before you begin looking at homes, you should try to figure out an estimate of how much you can afford.
Some first time homebuyers may have a hard time figuring this out. As a rule of thumb, your monthly housing costs should be around 25% of your monthly income. So, if you have a household income of around $70,000 after taxes, then your monthly payments on a home should be around $1,450 a month, if you are following this rule.
Your loan may be approved for more than this amount, but finding out how much you can afford will help you avoid overspending on a house or looking into homes that you can’t afford.
If you are planning on financing your first home with a loan, getting pre-approved is another great way of determining the price range you should be shopping in.
Some sellers won’t let you view their home until you have been pre-approved because it shows them that you are a serious and qualified buyer. This could give you the upper hand in competitive markets where sellers may receive multiple offers. Sellers are more likely to take you seriously if you’ve already been pre-approved.
Finally, once you find a home you want to buy, having pre-approval can expedite the mortgage application process. Since you’ve already provided the necessary financial documentation, much of the groundwork for the loan application is already done which means you may be able to close on your home quicker.
Closing costs are the fees and expenses associated with finalizing the real estate transaction and they can significantly impact the overall financial picture of purchasing a home.
Good news! When purchasing a home in Florida, the seller typically covers a majority of the closing costs. However, you will still be obligated to pay for certain things at closing, especially if you plan on making a purchase with a loan. Depending on your loan amount, your closing costs will typically be around 2-3% of the sales price of the home. Your closing costs will cover things like your inspection, home appraisal, lenders fees, and other expenses
First-time homebuyers need to be financially prepared for these additional expenses on top of the down payment. Being aware of these costs in advance helps prevent financial strain and ensures you have the necessary funds to complete the purchase. being mindful of closing costs is crucial for first-time homebuyers to make a well-informed and financially responsible decision. It’s an essential part of the home buying process that should not be overlooked, so you can avoid surprises.
The final thing on my list of 5 tips for first time homebuyers is to work with a realtor! First-time homebuyers can benefit significantly from working with a realtor for many reasons:
Confidence and Peace of Mind: Working with a realtor gives you confidence that you’re making well-informed decisions and following a structured process. Their guidance provides peace of mind, especially in a complex and competitive real estate market.
You’re in the right place! I love working with first time homebuyers and I am equipped with all of the resources to make your transaction run as smoothly as possible. My guidance can help simplify the home buying process, help you navigate challenges, and lead to a successful and satisfying home purchase. When working together, I strive to provide you with peace of mind and confidence in knowing that one of the biggest purchases of your life is in good hands.
Let’s embark on your home buying journey together!
If you’re ready to get started, get in touch with me by calling or texting (407) 729-0178 or by clicking the button below! I’m here to support you every step of the way.