Your first home purchase is a big milestone, and it is completely normal not to know everything going in. Most first-time buyer regrets come from a handful of predictable mistakes. Knowing them ahead of time lets you enjoy the process and end up in a home that works for you for years.
Many new buyers focus on the principal and interest payment and forget about everything else that comes with owning. A realistic budget includes:
Add those together and compare the total with your take-home pay, not just your gross income. Our mortgage calculator is a good starting point.
The down payment is just one piece of the cash you will need. Closing costs, the home inspection, the appraisal, moving expenses and early repairs all come due around the same time. Ask your loan officer for an estimate of your total cash to close early, and keep a cushion in savings afterward. Arriving at your new home with an empty bank account leaves no room for the surprises that tend to show up in the first few months.
It is tempting to start touring homes right away. But without a pre-approval, you may fall for a home outside your price range or lose out to a buyer who already has financing lined up. A loan officer can review your finances, explain which programs may fit and give you a clear budget before you begin. If you are short on savings, ask about low down payment options, which can include conventional loans with as little as 3% down for eligible buyers and FHA loans with 3.5% down for those with a 580 or higher credit score.
You can renovate a kitchen, but you cannot move a house. Before you commit, think about the things that will affect your daily life for years:
Drive through at night and on weekends. Talk to neighbors if you get the chance.
Your life will likely look different in five or ten years. A job change, a growing family, aging parents or a desire to work from home can all change what you need. You do not have to predict everything, but consider whether a home can adapt. An extra room, a flexible layout or a location that would be easy to rent out later can give you options.
Buying a home involves contracts, negotiations, inspections and financing details that can trip up even savvy people. Surround yourself with a solid team: a real estate agent who knows your area, a thorough home inspector and a loan officer who explains things clearly and answers your calls. Ask questions at every step. There are no silly ones when it comes to the biggest purchase of your life.
Ready to start on the right foot? Visit our first-time home buyer page, then reach out to FLO Mortgage to talk with a loan officer about getting pre-approved.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
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