Navigating the Homebuying Process: Essential Tips for First-Time Buyers
Buying your first home is an exciting milestone, but it can also feel overwhelming. Between securing a mortgage, finding the right home, and navigating the closing process, there’s a lot to consider. The good news? You don’t have to do it alone.
Whether you’re just starting your homebuying process or ready to make an offer, these essential tips may help you navigate the process with confidence.
1. Know Your Budget
Before you start browsing listings, take a close look at your finances. Knowing how much you could afford may save you time and help you focus on homes within your price range. A good rule of thumb is to try and keep your monthly mortgage payment (including taxes and insurance) at or below 28% of your gross monthly income.
Consider other costs too—such as closing costs, maintenance and utilities. A solid budget may help you feel financially comfortable once you move in.
2. Get Pre-Qualified for a Mortgage
A mortgage pre-qualification may give you a better idea of how much a lender is willing to offer and shows sellers that you’re a serious buyer. This step may give you an edge in a competitive market.
Tip: At Service Credit Union, we offer personalized mortgage solutions with competitive rates, to help you find a loan that fits your needs. Our team is here to guide you through the process and answer any questions along the way.
3. Find the Right Real Estate Agent
A great real estate agent is a valuable partner in your homebuying journey. Try to find someone who understands your needs, knows the local market, and can negotiate on your behalf. Ask for recommendations, read reviews, and consider interviewing potential agents before deciding.
Tip: Service Credit Union members may simplify their search with our HomeAdvantage® partner program, which connects you with top-rated local real estate agents and additional perks. Visit HomeAdvantage® to see how you qualify and to learn more about additional perks.
4. Prioritize Your Must-Haves
When searching for a home, it’s easy to get caught up in the excitement. Make a list of your must-haves vs. nice-to-haves. Consider factors such as location, number of bedrooms and commute time. Staying focused on your priorities will help you find a home that truly meets your needs.
5. Don’t Skip the Home Inspection
A home may look perfect, but an inspection may reveal potential issues that aren’t visible at first glance. Consider hiring a professional inspector to help you avoid unexpected expenses after you move in. If major repairs are needed, you may be able to negotiate with the seller or decide that it’s not the right home for you, and continue with your home search.
6. Understand the Closing Process
Once your offer is accepted and you have approval from your lender on your mortgage application, you’ll begin to enter the closing phase. This involves reviewing and signing your closing paperwork, and making your down payment. Be prepared for closing costs, which could range from 2% to 5% of the home’s purchase price.
7. Plan for the Future
Homeownership is a long-term commitment. Setting up an emergency fund for home repairs and unexpected expenses may help you stay financially secure. Consider automatic savings options to build a cushion over time.
We’re Here to Help
Buying a home is one of life’s biggest financial decisions, and we’re here to support you every step of the way. Whether you need mortgage guidance, budgeting tools, or homebuying resources, Service Credit Union is committed to helping you achieve your dream of homeownership.
Ready to take the next step? Contact us today to explore your mortgage options and start your journey to homeownership with confidence.
Tip: Visit servicecu.com/learn to check our schedule of free upcoming homebuying and other financial literacy webinars. Choose an interesting topic, and register today.
Service Credit Union’s Nationwide Mortgage Licensing System & Registry (NMLS) is 491588
