Questions to Consider for First-Time Homebuyers

January 1, 2022

The first-time home buying experience can be exciting, but it can also be stressful. In recognition of American Housing Month, we are providing answers to questions first-time homebuyers should consider before purchasing a home.

1. How much money should I have saved up?
   Start with an evaluation of your finances. Figure out how much money you have for a down payment. Down payments are typically 5 to 20 percent of the price of the home. Remember, it is important to keep three to six months of living expenses in your bank account to cover any unexpected costs.
2. I have debt. How much is too much?
   To know how much debt you have, add up your monthly debt payments such as car, credit card and student loan payments and divide them by your monthly income. Try to aim for 45% or less.
3. What are some costs that I should factor in?
   Find the average cost of utilities, factor in gas, electricity, water and cable. Consider the cost of yard maintenance and other basic maintenance costs. If you are planning to buy a home, factor in real estate taxes, mortgage insurance and possibly a homeowner association fee.
4. Which type of home best suits my needs?
   Carefully consider your current life and work situation and think about what best suits your needs. For example, do you want a fixer-upper or do you want something move-in ready? A fixer-upper can be cheaper than a move-in ready home, but expect to do work or pay for work to be done.
   
   Also, it is important to determine how long you plan on staying. The longer it is the more it makes sense to build equity in your home.

5. Who can help guide me through the home-buying process?
   Look no further! We have a full array of lending options to help you live out your home ownership dreams.

When it comes to your mortgage, bank with people who know the local market - folks like us who live and work right here where you do. We want to be a good neighbor and an even better lender. Meet our team today!

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