House Buying For Beginners: A Useful Checklist!

Jan 31, 2023 | Homebuyers

Buying a home is a big project. As a result, it is important to take the necessary steps to ensure that you make an educated decision when purchasing a house. This checklist will provide first-time home buyers with information and advice on making the process of buying the first house easier. From understanding the importance of knowing how you’ll pay for your home, to considering what kind of neighborhood you’d like to live in and finally purchasing your home and getting it insured.


How to Buy Your First Home


There are many reasons people buy a home. These range from low mortgage rates, taking advantage of a buyer’s market (because they feel everyone else is buying), to needing a place to settle down. Before buying your first house, it is important to consider your current financial situation and what kind of house fits your budget. You should also only buy a home because you want to settle down, and you have a way to pay for it.


How Will You Finance Your Home


The most important thing to consider when buying a first house is how you’ll pay for it. You will need to have enough money saved up for the down payment, closing costs, and any other fees associated with first-time home buying. Depending on your financial situation, you may also need to secure a loan or mortgage to pay for your first home. Before you choose a lender, it is important to compare different offers, ask questions and understand the terms and conditions of each loan or mortgage.


In addition to the above tips for buying a house, a first-home buyer also requires a stable job, a regular income, and a positive credit rating. If you listened to the news during the recession, you would know from the foreclosures that a mortgage or any kind of loan should not be taken lightly. It also is important to understand that you are financially responsible for any house you buy.




Begin Your Saving Early


If you’re buying a house for the first time, it’s important to have enough savings set aside for the down payment, closing costs, and any other fees associated with the process. The earlier you start saving, the more prepared you will be when it comes time to make an offer on a house.


Down Payment: Your down payment as a first-time buyer will depend on the type of loan you get, your credit rating, and your preferred lender. Generally, most people will need to have a down payment of at least 10%, but if you have excellent credit and a good job, you may be able to secure a lower down payment. Even if your down payment is only 5% or 3%, it is important to start saving early.


Closing Costs: Closing costs are the final mortgage fees. They may include fees for home inspections, appraisals, and other services that occur upon the purchase of your house. These vary by lender and region but can range from 2-6 percent of the loan amount. Closing costs on a $250,000 loan can range from $5000- $15,000.


Research and Consider Neighborhoods: When buying a home for the first time it is important to research the area or neighborhood you want to live in. You should consider things like school districts, crime rate, and cost of living when deciding on where to purchase your home. It’s also important to make sure the area has access.


Other Fees: There may be other fees associated with purchasing a home such as homeowners association dues, basic repairs or upgrades, and furnishings. Make sure you factor these into your calculations when determining how much you can afford.


Mortgage Selection


There are different types of mortgages for a first-time home owner. Fixed-rate and adjustable rate are the two most common types. A fixed-rate mortgage has a set interest rate throughout the term of the loan, whereas an adjustable rate mortgage has an interest rate that can fluctuate over time.


It is important to compare different lenders and understand the terms and conditions of each loan. You should also consider the length of the loan, the amount you must pay each month, and any additional fees associated with the loan.


There are also different categories of mortgages. The major ones are conventional mortgages, FHA loans, VA loans, and USDA loans. Some conventional mortgages for people buying a house for the first time only require a 3% down depending on your credit score, but they do not have a government guarantee. FHA loans are government-insured and can accept a down payment of 3.5%. A VA loan is available to veterans and active military personnel, with no down payment required. USDA loans are government-insured loans that allow you to buy a house in rural or suburban areas with zero down payment.


Time to go Buy Your First House


Shopping for a house is a long and often stressful process. From understanding the local market to visiting homes and making offers, these buyers’ tips will help guide you through the entire first-time buyer home process.


– Get pre-approved for a loan or mortgage

– Research local real estate markets

– Determine your budget and needs

– Visit potential homes

– Make an offer and close

– Get the home insured




Receive a Preapproval Letter


Before you even get started with the home-buying process, it’s important to get pre-approved for a loan or mortgage. Getting pre-approved will give you an idea of how much you can borrow and what your monthly payments may look like. This will help make the entire house shopping process more organized and efficient. It will also show real estate agents and home sellers that you are a serious buyer.


Get a Real Estate Agent


You should consider working with a real estate agent to help with the house-buying process. They can provide insight into the local market, give advice and guidance on potential homes, and handle negotiations when it comes to making offers. Working with a real estate agent also takes some of the guesswork out of the entire process – they know what to look for when inspecting a property. But take your time to find a good one.


Choose Your House And Neighborhood


Now that you are preapproved for a loan and have found the right real estate agent, it’s time to start house hunting. Consider what kind of house and neighborhood is best for you. Look at properties that fit your budget and needs, but also take into account things like commute times, schools, and amenities.


Close The Deal


Along with getting a mortgage and buying a house, it is important to shop around and compare different prices, coverage options, and policies before selecting one. Once you have taken all of these steps, it’s time to close the deal! Before signing anything, make sure you read and understand the terms of your purchase agreement.




Don’t go Beyond Your Budget


When buying your first home and making an offer, it is important to remember not to overextend yourself. Make sure that the monthly payments do not exceed what you can afford. It’s also important to factor in taxes, insurance costs, and closing costs when calculating how much you can spend.


You Need Home Owner’s Insurance


Homeowner’s insurance is essential to protect your home and all of your belongings from potential damage. It is important to purchase a policy that has enough coverage for both the house and its contents. Comparison shopping can help a first-house buyer find the best deal, so be sure to look around and compare prices before settling on one insurer.




Finally, buying a home is a major milestone, but it can be overwhelming if you don’t take the necessary steps to make sure you’re prepared. It is important to remember that you are making a long-term commitment when purchasing a house. Make sure that you understand what you are getting into and take steps to protect your investment. By following these home buying tips, first-time buyers can make the process of buying a house easier.


Contact Thrive Lending if You’re a First-Time Home Buyer


If you are a first-time home buyer, there is a lot to learn. Thrive has experienced mortgage professionals who can help you understand all of the key processes associated with buying a home. Our team will provide personalized first-time home buyer tips for your unique situation and make sure that you are informed about each step in the process. Contact us today to get started.

Thrive Lending Group