Buying your first home represents a major moment in your life. It’s a milestone that you’ll remember forever. Your home represents a financial investment to some degree, but it’s also a place that you can call your own — a place where you’ll make important memories. You don’t arrive at your first home-buying experience by accident. Being ready to buy your first home is the result of careful planning and patience. If you’re moving toward purchasing your first home, here are some important things to know as you get started with the process.
Saving for Your First Home Is Going to Take Time
Most people don’t just back their way into the financial position of being able to buy a home. (Those people certainly don’t read blog posts about preparing to buy a home.) Rather, you plan to buy your first home for years in advance — and you may have to for the sake of savings.
You may be eligible to receive a home loan from the Federal Housing Administration that allows you to purchase a home with only five percent down, but conventional home loans require more money down. If you want to avoid paying mortgage insurance, you’ll need to pay 20% down when you make your home purchase. If you’re buying a $150,000 home, that’s $30,000 as a down payment. To get to that number, you’ve got to start saving well in advance.
Mortgage Pre Approval Is the Next Step
Knowing your budget for buying a home will help you look more efficiently at all of your options. Having a mortgage pre approval letter will make you a serious buyer when it comes time to actually make an offer on a home. Your mortgage pre approval is essentially a vote of confidence from a lending institution (it is not an actual loan). Any first-time buyer should make sure that they receive a pre approval letter before looking seriously at homes. For more on that, you can refer to this blog post.
Know What You Want and Where You Want to Be
There’s a reason that “location (location, location)” is such an important factor in deciding where you purchase a home. You need to know where you want to live before you start searching for a home. You should also know what home features will be important to you in your new home. In addition to knowing where you want to live, you should be confident that you’re going to stay in your new home for at least five years if you want to avoid losing money on closing and moving costs.
Work with The Swanson Group When Purchasing Your First Omaha Home
The Swanson Group has the experience and knowledge of Omaha to make your first home-buying experience easy. If you have questions, comments, or concerns, you can always reach out to our attentive team for help. Start working with Bill, Chris, and Faith to find your first home. Contact The Swanson Group in Omaha, NE by calling the office at 402-679-6566.
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