The Best Advice for First-Time Homebuyers
January 13, 2023
Navigating the Housing Market as a First-Time Buyer
Tired of throwing away money renting a place to live? Ready to make a local town your own? Looking to build generational wealth?
Whatever your reasons for making a home purchase, there are a slew of advantages to buying a home for the first time. Naturally, that also tends to include a slew of questions and decisions to make.
Thankfully, there are answers to be found for many newbies entering the real estate market for the first time. If you think you can commit to living in the same place for at least two years or more, then buying could be a good idea to add to your horizon. Advice abounds from family and friends to online sites, so we’ve pared down what we think is the best of the best advice, here.
- Save, save, and save some more.
Considering that the overwhelming majority of first-time homebuyers tend to take out a mortgage, step 1 typically involves saving for a down payment. Most buyers need about 2-5 percent of the loan amount in cash to cover their closing costs, which include inspection, mortgage fees, and actual moving costs.
- Work that credit score.
If you pay for goods and services using a credit card, work toward zeroing out all of your credit cards or other personal short-term loans. The higher your credit score, the lower interest rate for a mortgage. Lower interest rates usually mean you can afford more house, or simply more cash in your pocket at the end of the month.
- Understand your loan options,
These include conventional loans for as little as 3% down, an FHA loan (which might be helpful if you have. Less than stellar credit), and VA loans for veterans and qualified spouses. If you thought your only choice was a 20% down payment, you could be pleasantly surprised to learn you can qualify for a mortgage for a lot less money.
- Work with a realtor.
For first-time homebuyers, a realtor can be a tremendous resource. From helping you with understanding the mortgage process to scouring their private listings, to helping you negotiate and seal the deal, realtors earn their keep. Bonus — realtors’ commissions are paid for by the sellers, so you wouldn’t need to front their fees.
- Determine your needs and wants list.
Having a solid idea of your “need” must-haves and a few “want” nice-to-haves can help you identify what you’re willing to give and take when it comes to finding the perfect next place.
At Beltmann, we’re always available to help with any upcoming moving and storage needs, whether that’s a local move, across town, or across the country via a full interstate relocation. Contact us for a free contactless quote, and we’d be happy to walk you through the process.
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