First Time Home Buyers

What you need to know

Searching for a new home as a new home buyer can be nerve-racking. Let us help you through the process, buy giving our agents a call with any of your questions that you have. We also will have tips on our news/blog page that could help you out through your process.

Fortunately, you will not be alone in this process. We will listen to your needs and want to establish our goals and objectives. We work as a team to meet the goals and you will continually be in the loop during the entire process. In this fast paced market, we believe communication is key in meeting our goals and building our relationship.



1. What is the first step when buying a home?

Get pre-approved by a lender. Most buyers start their home search not knowing how much they can qualify for, which can lead to frustrations later on. It would be more efficient to know your price range, then start looking within that range.

It’s also effective to be “armed” with a lender pre-approval letter when you do find the right home and are ready to put in an offer. It gives the seller the confidence that you are qualified for that purchase. It may be a “buyers market” but the market it moving fast! Well-priced properties do not stay on the market long.

2. How much down payment do I need?

That depends on the type of financing you will be using.

  • FHA loans: FHA loans are secured by the government. They are easier to qualify for in most cases. FHA loans require a down payment of 3.5% of the purchase price. Borrowers will be required to pay an upfront mortgage insurance premium, plus a monthly mortgage insurance premium.
  • VA loans: VA loans are available to qualified active and retired military members. VA borrowers can buy a home with 0% down and pay less in closing costs. However, there is a one time funding fee charged to the borrower but it can be rolled into the mortgage loan amount
  • Conventional loans: Conventional loans are any loan not guaranteed or secured by the government. They can be conforming (follows the guidelines of Fannie Mae or Freddie Mac) or non-conforming. Generally a down payment of 20% of the purchase price is required, however there are programs that require less, even 0% down (for first time home buyers) depending on the lending institution.

No matter what type of loan you choose to use, keep in mind that there will be closing costs associated with the loan as well. Also, there are many programs out there geared to help first time home buyers with down payment assistance.

Please feel free to contact us for a list of qualified lenders to help you start your home buying process today!