Navigating Your First Home Purchase

Purchasing your first home and becoming a first-time homeowner is a significant milestone. While the prospect of becoming a first-time homeowner can be exciting, it can also be intimidating. The more information you have about buying a home, the better position you will be in. Here are five tips to help you in your home search.

1. Ensure you’re Ready to Commit to a Mortgage. Consider factors like your financial stability, how much you can afford for a down payment, your credit score, and long-term plans. Buying a home is a significant and long financial commitment. See what your mortgage rate and payments may be using our free online calculators. 
2. Get a Preapproval. Before you start your online search, find out how much house you can afford! Your loan officer will assess your financial situation to determine your loan eligibility. They will review your income, assets, and liabilities, so they can determine how much money you can safely spend each month on your mortgage. You will need to gather essential documents, including one month of current pay stubs, two years of W2s, and two months of current account statements.
3. Work With a Real Estate Agent. Work with a buyer’s agent to find the perfect property. A real estate professional offers access to MLS listings, expert insights on neighborhoods, assistance in submitting offers, and guidance with the Purchase and Sales Agreement. Additionally, they can recommend reputable home inspectors to ensure the property meets your standards. A house is a major purchase and the last thing you want is to buy a property with major issues you don’t know about. Also, there isn’t any cost to you when working with a Buyer’s Agent! They get paid by the seller if your offer is approved. 
4. Budget For Maintenance. While closing on your dream home is a significant milestone, it’s crucial to remember that homeownership also comes with ongoing financial responsibilities. As a first-time homebuyer, it’s essential to set aside funds for unexpected repairs and regular upkeep.
5. Prepare for Closing. Before closing, it’s important to plan for the closing costs. The closing costs are the fees you will pay to finalize the mortgage. Your mortgage lender will provide you with a document containing the final terms of your mortgage loan, closing costs, and interest rate. As you sign all the paperwork, you are officially a homeowner – marking a significant milestone worth celebrating!

MVCU Can Help

Merrimack Valley Credit Union can help you with buying your first home. Our knowledgeable mortgage team will find the right loan to fit your needs. Explore options like HomeReady Mortgage, ideal for first-time homebuyers. Learn more at mvcu.com/mortgage!

Category: Home Ownership