Buying your first home is an exciting time filled with change, choices, and lots of questions. Here we answer many of the questions first-time home buyers have and offer first-time home buyer tips, such as how to get down payment assistance and take advantage of programs available to you.
Take the stress out of your home-buying experience and know what to expect by reading through this guide. If you still have questions, speak with one of our experienced loan officers to explore your options.
Buying your first home is a life-changing decision and you probably have asked yourself if you are ready to take this big step. Owning a home has many benefits over renting, but also carries many new responsibilities and financial decisions to consider.
Purchasing your first home will have some upfront costs, but could be cheaper than renting in the long run. These upfront costs include a down payment, moving costs, closing costs, and any renovations that need to be made. You must also consider monthly expenses in addition to your mortgage payment, such as property taxes, homeowners and mortgage insurance (if applicable), and homeowners association fees.
By purchasing a home, however, you will build equity. Usually, most home values increase year-over-year. You can also write off mortgage interest and property taxes in many cases. Because of these factors, the cost of buying could be cheaper than renting long-term.
To assess your financial situation and determine if you can afford the upfront costs of buying your first home, check out our mortgage calculator to estimate your monthly payment or get pre-qualified and speak with a loan officer for a more specific assessment.
Credit score requirements for purchasing your first home vary depending on the type of mortgage loan you apply for. Below are general credit score requirements for conventional and government-backed loans.
For more information about the different types of mortgage loans, we will go into more detail below.
Now that you’ve weighed the options and made your decision, there are a few important first steps when preparing to purchase your first home. Doing your research on types of loans and shopping around for rates will save you money and time in the long run. Don’t worry - you don’t need to be an expert, but having a general understanding of the process will give you a head start.
If you have questions about how to calculate your budget, want more information about what loans you could qualify for, or would like to get pre-approved today, fill out a quick pre-qualification form.
There are dozens of loan types for first-time home buyers to choose from, however, there are four popular loan programs that most end up using: a conventional loan, a Federal Housing Administration (FHA) loan, a Department of Veteran Affairs (VA) loan, a US Department of Agriculture (USDA) loan, or a Utah Housing loan.
Each of these loan programs are accessible, have low rate or low down payment options, and friendly terms that first-time home buyers can benefit from. A loan officer can help you know which loan is right for you, but it is helpful to be educated on your options beforehand.