Five Must-Have Tips for First Time Home Buyers
Buying your first home is an adventure into the unknown. It’s an exciting time in your life and finding your dream home should always be your goal. To make it less stressful, take this time to educate yourself on how to get the ball rolling into homeownership. Here are five important tips first time home buyers should know about to become a successful homeowner.
Dive Deep into your Finances
Your finances will determine how much you can comfortably invest in your first home. Finding the right mortgage program will help you with narrowing down your search which is a huge time-saver. Adding a mortgage loan and property costs onto your expenses is a risk that should be carefully considered. Having good credit and paying down any debt you may have will show that you are financially stable, a responsible borrower, and make securing a mortgage easier.
Find out How Much You can Borrow
“Knowing ones “buying power” is extremely important. Knowing what one can afford will allow for individuals to implement strategies that will set them up for success,” says Mike Williams, Assistant Vice President, Retail Business Development Officer. Budgeting is one of the most important tips to ensure that you are saving money and being financially responsible. Before you start actively searching for a home, figure out how much of a down payment you would be willing to do. A down payment on a house is the percentage of the total amount for a home that you are willing pay upfront. “The normal requirement for a down payment is 20% but at Peoples Security Bank, you can purchase your dream home with as little as 3% down,” says Amy Walsh, Mortgage Originator.
Once you have a budget that you are comfortable with, it’s time to get pre-qualified for a mortgage. Lenders will need to look at your financial background such as your income, debts, and credit history before you are pre-qualified. Once you receive a pre-qualification letter, you will have a better understanding of what you can borrow. It is a requirement for many realtors prior to showing you homes and it shows to sellers how serious you are about becoming a homeowner.
Pay Attention to the Housing Market
The housing market is always changing and it is dependent on how many houses are for sale and how many buyers are looking. If it is a seller’s market, prices may be higher with less homes available to purchase on the market. This is beneficial to potential homeowners so finding the right time to buy could help you save money in the long run.
You may notice that housing prices can fluctuate depending on the geographic areas you are looking at. Take some time to learn more about the places you are home searching. There are resources available on online housing sites that will display important geographic information such as local tax history, demographic statistics, estimated local market values, and school district ratings.
Learn about your Mortgage Options
Peoples Security Bank offers different types of mortgages that are designed to be beneficial for first time home buyers. We have fixed rate and adjustable mortgage loans and construction mortgages that are intended to help with building homes. We can work together to meet your needs and find the perfect home for you.
Look Into a First Time Home Buyer Program
At Peoples Security Bank, we want to let potential homeowners know that they are in good hands. We provide assistance for first time home buyers that make the transition into homeownership as easy and stress-free as possible.
With our team of mortgage professionals, we have designed the Community Lending Program for first time home buyers which was created for low-to-moderate income borrowers and clients purchasing a home in an underserved area. For those who don’t qualify for the Community Lending Program we also offer flexible down payment options. Whatever your situation, our team at Peoples Security Bank will be pleased to help you purchase your first home!