First Time Buyers

What do first time home buyers need to know?

As a first-time homebuyer, there are a few things you should know:

  • Start saving for a down payment: Most lenders will require a down payment of at least 3% of the purchase price of the home. The more you can save for a down payment, the less you’ll have to borrow and the lower your monthly payments will be.

  • Check your credit score: Your credit score will play a big role in determining the interest rate and terms of your mortgage. It’s a good idea to check your credit score and work to improve it before you start looking for a home.

  • Get pre-approved for a mortgage: Getting pre-approved for a mortgage will give you a better idea of how much you can borrow and what your monthly payments will be. It will also make you a more competitive buyer when you find a home you want to purchase.

  • Make a budget and stick to it: Buying a home is a big financial commitment. It’s important to make a budget and stick to it to ensure that you can afford the monthly payments and other costs associated with homeownership.

  • Understand the closing costs: In addition to the down payment, you’ll also have to pay closing costs when you buy a home. These costs can include things like mortgage points, title insurance, and fees for inspections and appraisals. Make sure you understand what these costs will be and factor them into your budget.

  • Consider working with a real estate professional: Using a real estate agent can make the homebuying process easier and less stressful. An agent can help you find homes that meet your criteria, negotiate a fair price, and handle the paperwork and other details of the transaction. We’re happy to help with realtor reccomendations.

The SJ Home Loan Team is very experienced working with first time buyers, it’s actually our passion! Our team will work to not only help you buy your first home, but to educate you through the process so you are empowered and confident in your purchase. Additionally, we are incredibly proud of what we can offer for rates and fees and would love to show you what we can do!