First-Time Homebuying Tips

Be prepared for your homebuying journey with these tips.

Buying your first home is one of the largest financial decisions you can make. These few tips will help prepare you for your home-buying journey.

Check your credit score.

First things first. Check your credit score before you get your pre-approval so there are no surprises, and you’ll know how much you are qualified to borrow. 

Get a pre-approval.

Pre-approval letters are provided by the mortgage lender and state the amount that they are tentatively willing to lend to you.  This shows the seller you are serious and can afford the property.

Know the expenses and what is required.

Determine if a down payment is required. Generally, a conventional loan requires at least 3% of the purchase price for a down payment for a first-time homebuyer. With an FHA loan, you'll need at least a 3.5% down payment. VA home loans don't require any down payment. And qualified first-time homebuyers’ grants are available that can help you with down payment assistance along with closing costs. Be sure to discuss all options with your mortgage lender. 

Don't forget closing costs and other fees.

Title search, inspections, appraisals, taxes, insurance fees, and HOA transfer fees are a few additional expenses to consider with the purchase of a home. Closing costs average about 3-6% of your home loan balance. These are expenses you will want to figure into your home-buying budget.

Don't buy more than you can afford.

Know the maximum monthly house payment you can afford. Owning a home is more than the monthly payment. Other costs include mortgage insurance, taxes, home insurance, HOA fees. If your down payment is less than 20%, an escrow account will be established with your home loan that allow your lender to pay certain property-related expenses. The money that goes into the escrow account will come from your monthly mortgage payment.

Don't skip the home inspection.

In short, a good home inspection can keep you from making a bad investment. While home inspections are not required, a good home inspection report will help identify issues or defects with the home. This can include defects in the property's roof, walls, and/or basement. It can also reveal pest infestations or problems in mechanical and electrical systems. A general home inspection in Kansas will evaluate the exterior of the home (foundation, garage, walls. roof, patio, balconies, and fence), and the interior (plumbing system, electrical system, HVAC, basement, ceiling, floor, kitchen, and attic). If special issues with structure, or electrical or mechanical components need to be addressed, a specialized engineer’s inspection and report will be required, for an additional fee.

Go house hunting.

Check out the neighborhood, schools, homeowners’ association (HOA), shopping and proximity to your employment. Check out online resources for the neighborhood and, if possible, chat with neighbors. Visit the area during the day and at night. 

If you need help with any of these steps, or have any questions, please talk to our mortgage experts.  We’re here to help make the pathway to homeownership a pleasant one!