Buying your first home is an exciting time in your life. The thought of no longer paying rent or living at home is freeing! At the same time, many first-time home buyers need help along the way to guide them in the right direction and understand all aspects of a mortgage. You have questions and NEBAT has answers to support you on your journey to buy homeownership.
Making sure you are fully prepared before you go home shopping is a crucial piece of the puzzle. Our dedicated local Mortgage Lending Team at NEBAT is here for you before, during and after your home purchase to help educate and assist you with any needs that may arise. The first step is sitting down and discussing your short and long-term financial goals with one of our local lenders.
How to Prepare to Buy Your First Home
During the initial meeting we will discuss three important items that affect your home buying abilities:
Your Credit Score:
We will pull a credit report and discuss the findings with you including any potential inaccuracies and ensure your recent activity has no limiting factors. Even if you’ve had a bump or two in the road along the way, your mortgage lender will be there to provide advice and guidance. Your credit score will be a large factor in a pre-approval to buy your first home.
Your Down Payment:
We will discuss your asset position and the options you have with more or less money down. We have several loan program options including first time home buyer programs. We’ll also discuss how a larger down payment relates to a lower monthly mortgage payment, creates immediate equity and can help you avoid Private Mortgage Insurance (PMI).
Your Monthly Payment:
No matter how large of a down payment you’ve saved for, understanding all the components of a monthly mortgage payment is critical as you prepare to buy your first home. Your loan payment will include principal, interest, property taxes and homeowner’s insurance. In addition to these, keep in mind a few other expenses:
- Some properties may have HOA or Condo Association dues monthly.
- Single mortgages over 80% loan to value require private mortgage insurance (PMI).
- Expenses such as electric and water bills, wifi and cable, heating and cooling and home repairs come with owning a home.
Making sure you understand and are prepared to make a monthly payment before you write an offer is something your local lender will cover in depth with you.
As you’re working through the steps of buying your first home, NEBAT strongly recommends requesting a pre-approval letter (and your realtor would probably agree with us). This is a sure way to understand what you can afford. Plus, it’s a major benefit to home sellers to show you’re serious. Through the process of working with a mortgage lender, we’ll provide you with a budget and details of what your monthly payment could look like. You’ll come away with a letter to show sellers you’ve taken all the necessary steps.
As your trusted local lender, National Exchange Bank & Trust will be there for you from the start to answer any questions you may have with buying your first home. We will make the transaction an educational experience that exceeds your expectations. We will also be available for any questions you have throughout the life of the loan, because we service our loans locally. Find your local National Exchange Bank & Trust lender today to get started!