Deciding to purchase your first home isn’t an impulsive decision. It can take years to save for a downpayment depending on your situation. But the down payment isn’t the only thing that matters when getting a mortgage. Many individuals and couples who think they’re ready to buy their first home may not be as prepared as they think. When you start planning early, you can work with a mortgage broker filled with confidence that you have a handle on everything there is to know about the home buying process. Here are the top things Atlas Crown Mortgage thinks every homebuyer should know.
Start saving early
There’s more to buying a home for the first time than just the down payment. Many homebuyers are surprised with the number and amount of associated costs when they’re finally ready to buy.
Down payment: First-time homebuyers are often eligible for down payments as little as 3 percent. However, even 3 percent of a $350,000 home is still over $10,000. Plus, the more you put down on a property, the lower your monthly payments.
Closing costs: Associated fees can range anywhere from 2 to 5 percent of the home price. You can try to negotiate some of the expenses with the seller. Still, you’ll be more confident if you know you have the savings to cover even unexpected costs.
Emergency funds: As a new homeowner, you’re on the hook for anything that breaks or stops working. Having a cushion to cover these costs will ensure you can care for your home without turning to your credit card.
You don’t want to feel cash-strapped by buying a home. The earlier you start saving, the more confidence you’ll have going into closing on your property.
Work with professionals to plan a budget
Along with adequate savings, a strict budget that fits your lifestyle is essential for first-time homebuyers. Some banks will pressure clients into contracts that can be disastrous for their future.
You need to work with a professional who’s invested in building a budget that fits your lifestyle so you don’t overextend yourself. That way, you’re able to continue to save for your next home, make extra mortgage payments, and increase your contributions to your retirement accounts while becoming a homeowner.
Keep tabs on your credit
Even if you keep credit card usage low and make on-time payments, it’s a good idea to keep tabs on your credit. You don’t want to find out about an unexpected open account or unpaid bill when you begin working with a mortgage provider for the first time.
Even if you have good credit, a professional counseling service can help you improve your rating. Excellent credit can help you secure a lower interest rate.
Learn about the first-time homebuyer assistance programs in Arizona
Many programs are available for first-time homebuyers to offset the costs and provide valuable information about everything from home inspections to choosing a lender. In addition to FHA loans backed by the federal government, every state has different assistance programs.
It’s crucial to work with a broker who’s well versed in the assistance programs in Arizona, so you don’t miss out on potential savings.
Atlas Crown Mortgage offers expert advice to first-time homebuyers in Phoenix.
Just because you’re a first-time buyer doesn’t mean finding a mortgage has to be an arduous process. Atlas Crown Mortgage cracked the process to make it streamlined and efficient to help all kinds of homebuyers negotiate property ownership. We’re committed to making sure that you end up with a mortgage that achieves your goals without breaking your budget; whether you’re buying a primary residence, investment property, or need to refinance,
Our team understands how overwhelming the mortgage process can be. We’re committed to ensuring our clients aren’t pressured into a contract that puts them in an impossible situation, especially when they’re first-time homebuyers in Arizona.