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From Rookie to Rockstar: The Ultimate Guide for First-Time Home Buyers

Writer's picture: Steve BoyntonSteve Boynton

First-time home buyers
Learn about the process and what you need to get started on buying a home

Alright, listen up, folks! Being a first-time home buyer can be a tad overwhelming. I mean, we're talking about a big financial and emotional investment here. And let's face it, buying your first home is a major milestone in your adult life, so you want to do it right. Lucky for you, I've got your back. Here's everything you need to know put together right her in this handy first-time home buyer guide. We'll cover financing, picking the perfect house, and everything in between. Strap in!


Being a First-Time Home Buyer

First things first, let's talk about being a first-time home buyer. Trust me, it's a sweet spot right now. The economy is booming, outdoor recreation opportunities are aplenty, and the crime rate is impressively low.


Know What You Can Afford

Now, let's address the not-so-thrilling part – getting your financial ducks in a row. Yeah, I know, it's not the most exciting topic. But believe me when I say it's crucial to have your financial situation sorted early on. You need to figure out how much you can actually afford for your dream home. You don't want to bite off more than you can chew, right? So, if you're going the loan route, make sure you can meet all the requirements without drowning in debt. Your monthly mortgage payment should be something you can handle without breaking a sweat.


Speaking of finances, Bankrate.com suggests following the 28/36 rule. It's simple, really. Don't spend more than 28% of your gross income on housing and no more than 36% on debt. And hey, while you're at it, take care of your current debts before tying yourself to a house. It's also wise to steer clear of new credit or any new financial liabilities for a while. And hey, if you're serious about making a down payment, start taking your savings seriously too. Oh, and don't forget to prepare for those post-purchase costs. You don't want to get blindsided by expenses down the line, trust me.


Get Your Ducks Lined Up

Alright, now that your financial foundation is solid, let's get your affairs in order............I'm not talking about the spicy kind, we are talking finances here. When applying for a mortgage, you'll need a truckload of documentation. I'm talking income and credit info, bank statements, tax returns – the whole shebang. Keep track of everything, because even a tiny error in your credit info could send your credit score plummeting. We don't want that, do we? So, organize your financial records like a boss.


While we're on the subject of organizing, keep an eye on your spending. Knowing where your money goes will do wonders for your home-buying goals. Track every expense, big or small, so you can get a clear picture of your financial situation. It's all about being smart with your money, my friends.


Obtaining Financing

Now, let's tackle the financing part. Sure, most mortgage bankers will want a hefty 20% down payment upfront. But fear not! If your credit isn't stellar or you can't swing that kind of down payment, FHA loans are here to save the day. These babies are the government's way of helping you finance your home purchase. With an FHA loan, your down payment can be as low as 3.5%, and the interest rates can be pretty darn attractive. So, weigh your options and compare different assistance programs. Don't forget to consider closing costs, tax credit assistance, and those sweet interest rates. The more quotes you get, the better your chances of finding the right fit.


Oh, and here's a pro tip: Don't settle for the first lender that comes your way. Shop around, my friends! Review different types of loans, weigh their pros and cons, and make an informed decision. This is your future we're talking about, so take your time and choose wisely.


Sit Back and Look at the Entire View

Now, let's take a step back and see the bigger picture. When it comes to down payments, remember this: larger down payments usually mean lower monthly payments and interest rates. But a smaller down payment gives you more financial freedom upfront. It's all about finding the balance that works for you. If you opt for a smaller down payment, you can stash away some extra cash for a rainy day or take care of other pressing expenses. Or hey, you can splurge on furnishing your new home. It's your call, my friend.


Show the Seller Your Serious

Alright, pay attention because this is important. In some areas properties get snatched up faster than a plate of freshly baked cookies. Seriously, one moment a property is on the market, and the next moment it's gone. That's why you need to show that you mean business. Get a pre-approval letter from your lender. This little piece of paper will give sellers confidence in you. It shows them how much moolah you've got to fund your purchase, and it demonstrates your commitment to sealing the deal. Trust me, it'll give you an edge in this competitive housing market.


Don't Be Scared and Don't Make Assumptions

Now, listen up, folks. Don't go assuming you won't qualify for a loan. Speak to your home loan lender and find out where you stand. If it turns out you're not eligible for a loan, don't despair. Talk to your mortgage provider and figure out why you didn't make the cut. Knowledge is power, my friends. Once you know what needs fixing, you can work on it and make your dream a reality.


Be the Smartest in the Room

Oh, and here's a little secret – knowledge is your best friend. The more you understand about the home-buying process, the better choices you'll make. Nobody likes surprises when it comes to unexpected expenses, right? So, read up, educate yourself, and be prepared. Understand how your local homeowners association operates, and familiarize yourself with housing regulations. Trust me, it'll save you from unnecessary penalties and costs.


Finding the Right Home

Now, let's talk about picking the perfect property. It's all about finding the right fit for your lifestyle. Ask yourself, does a townhouse suit your needs, or would a single-family home do the trick? Oh, and don't forget about the neighborhood. It's not just about the house itself; the neighborhood will affect the value of your home in the long run, not to mention your happiness. Consider established neighborhoods in the suburbs, but keep in mind that making friends as the new kid on the block might not be a cakewalk. Remember High School school? Yeah, it's like that. So, make a list of what's important to you, and if a potential home and neighborhood tick off at least eight out of ten boxes, you're golden.


Is Now the Right Time?

But hold your horses, my eager first-time home buyers. Are you truly prepared to make the purchase? Buying a home is an investment, and it comes with a certain level of risk. So, take a step back and ask yourself if you're truly ready to take this big step. Consistent cash flow is a good indicator that you're ready to make an offer on a house. It's all about being financially prepared, my friends.


The Most Obvious Part, But Has To Be Said

Last but not least, get yourself a top-notch realtor. Sure, you might think you know your way around the area, but trust me, you need professional help. An expert realtor will help you navigate the market like a pro. They might even have access to pocket listings, which are properties that haven't officially hit the market yet. This can be a game-changer in a fast-paced housing market. Realtors are negotiation wizards, my friends. They do it day in and day out, and they've got the skills to get you the best deal. Plus, they'll handle all that pesky paperwork for you. Making an offer will be a breeze, and you can avoid costly mistakes with someone who knows the ins and outs of the industry.



Alright, if you've made it this far, you've got a solid grasp on what it takes to be a home buyer. It might not be a walk in the park, but trust me, it's worth it in the end. So, go out there, make the call, and turn your dream into an address. Just remember, the journey may have a few hurdles, but with the right knowledge and preparation, you'll come out on top. Good luck, my future homeowners!



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Find My Perfect Real Estate Agent is real estate referral service  by  Boynton Homes LLC owned and operated by  licensed real estate agent Steve Boynton (lic # 11265477-SA00) with Century 21 Everest (lic # 7376824-CN00), a licensed real estate brokerage. 6925 S Union Park, Cottonwood Heights, UT 84047. Equal Housing Opportunity.

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