Buying your first home is a huge step, but breaking it down into smaller steps will make it more manageable. Remember to take a deep breath and take your time. If you prepare and do your homework, then you’ll be ready to make a decision when it feels right! Here are our top tips to help get you there:
- Keep an eye on the housing market: The housing market can fluctuate, so it’s important to keep an eye on it to know the best time to buy. Currently, interest rates are expected to remain low in 2023, making it a good time for homebuyers.
- Set aside funds and be patient: Saving up for a down payment and closing costs can take considerable time, so it’s important to be patient. Although a 20% down payment is preferred, it’s not an absolute. You can purchase a home with as little as 3% down, but keep in mind that you’ll have to pay for Property Mortgage Insurance (PMI). Closing costs tend to be around 3-4% of the purchase price, so it’s a good idea to set aside funds for that as well.
- Choose a budget that works for you: Your mortgage payment should be no more than 25% of your take-home pay. Consider how much you can afford each month and choose a budget that works for you.
- Consider all your financing options: Determine your credit score to know what kind of loan you can get approved for. First-time homebuyers have more financing options, such as adjustable-rate mortgages (ARMs), fixed-rate mortgages, FHA loans, and VA loans. Consider all of them before making a final decision.
- Consider the community you’d like to live in: Lifestyle options, such as commute time, schools, and proximity to shopping and entertainment, should be considered when choosing a community to live in. Research different communities to find one that suits your lifestyle.
- Choose a home that fits your dream for now: Your first home is not likely to be your last, so don’t feel pressured to find the perfect home. Choose a home that fits your dream for now, and you’ll likely find several homes with things you prefer about each.
Buying your first home can be an exciting journey. By following these tips, you can make the process more manageable and find your dream home.
We’d love to give you a tour of our homes and neighborhoods as you consider your first home. Visit us at SigHomes.com to learn more about our new home communities!