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Are You Ready To Buy Your First Home?

| Kelly Fleiner

My husband and I are currently in the process of purchasing our first home. We are typical millennials in the fact that we waited to make this purchase. I am 30 and he is 31, which seems to be on trend with other folks in our age group. I thought I would discuss the process and some things you can do to help you make a large purchase like this. We have actually been working on buying a home for about two years now so I have some insight.

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There are a couple of different mortgage programs to consider before purchasing a home.

 Conventional Loans

  • Conforming Loans

  • Non-Conforming Loans

  • Jumbo Loans

Government Loans

  • Federal Housing Administration (FHA) Loans

  • Veterans Administration (VA) Loans

  • Rural Development (RD) Loans

Specialty Programs

So which one is right for you? That is something you can work on with your lender. The different programs could depend on your budget, the location of your home, and the program you qualify for. The first step to purchasing your home is to actually figure out how much you can afford. What is your income, what are your expenses, how much wiggle room do you need in your budget? These are all questions you should have the answer to before you apply for a loan or look for a house.

The next step is to get pre-qualified for a loan. Once you know how much you can afford you want to start looking right away. Stop into the credit union and see one of our lenders first. Once you are pre-approved, the lender will print you a letter that you can give to your realtor. Most realtors require their buyers to be pre-approved before they will work with them.

Another piece you will want to consider is your down payment. Do you have 20% to put down in cash or are you looking at something a little lighter? You may want to slow roll your mortgage process and save up for a down payment. Also, closing costs are those pesky fees at the very end of the mortgage process that can make or break a home purchase. You will want to know upfront what to expect and how much cash you should have to close. Your lender is required to walk you through all of this in the disclosure signing process. So rest assured, you will know what to expect.

The biggest thing to remember is that you will want to be prepared for anything. You can plan and plan and plan, but something will always come up. Have a backup plan and ask your lender what the worst-case scenario could be. When it is all done, you will be in the home of your dreams and well-prepared for that big step into adulthood.

 

 

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