Tips from a Banker: Buying Your First Home

Buying your first home can be an exciting journey, but it can also be a process with lots of big decisions. To help you prepare for the whirlwind ahead, here are some important tips and steps to keep in mind as you start the process:

1. Get Pre-Qualified. Before you even begin looking at homes, find a mortgage lender you know and trust, and start the mortgage application process. By doing this ahead of time, you’ll know how much you can spend on a house.

2. Create a Budget. Though your qualification will help guide what you can spend, you want to make sure you are not overextending yourself. Take into consideration all the costs that come with buying a home – down payment, closing costs, move-in cost, property taxes, insurance and utilities, just to name a few.

3. Now Stick to that Budget. Make sure your real estate agent knows exactly what your home buying budget is, so you don’t fall in love with a house you can’t afford. Having a real estate agent you trust is key in finding the perfect home for you.

4. Pay for a Home Inspection. After an accepted offer, pay for a home inspection. This thorough assessment of the property will help ensure that you aren’t buying a house that could potentially become a problem.

5. Be a Negotiator. You can also potentially save money by negotiating the price of a house. You can even negotiate things like repairs needed in the home and closing costs.

6. Buy Homeowners Insurance. Almost any mortgage lender will require proof of homeowner’s insurance before officially closing on a house. Make sure your home insurance plan adequately covers your home if repairs or a rebuild would be needed. Your plan can also provide liability insurance if an accident were to happen on your property.

Though buying your first home can be a lengthy process, it can also be exciting and fun when you know what to do. To talk to one our experienced mortgage lenders about F&M Bank mortgage options and to get pre-qualified, call us at (800)235-5331 or contact us here. 

F&M Bank – banking that feels right. Member FDIC.