Buying a home for the first time can be a daunting and confusing experience. However, if you’re armed with the right information, you can simplify the process and reduce the stress involved. When it comes to being a first home buyer in Georgia, your local mortgage lenders can provide you with some of the best expert advice on how to de-stress and make sure you’re prepared when embarking on a first home buyer loan.
To find out the best way to remove the stress that comes with finding a first home buyer program, take a look at these essential tips from BrightPath:
First Home Buyer in Georgia: Be Realistic About How Much You Can Afford
As a first home buyer in Georgia, it’s hard to know what you can afford. Typically, a home is the most expensive purchase that most people ever make, and it can be hard to really conceptualize what all those numbers mean. Ideally, you should figure out what your monthly payments are going to be and you should look closely at your budget to ensure you can afford, talk with your local mortgage lenders so they can help you find first home buyer assistance or the best first home buyer program that fits your budget.
Don’t Forget the Other Expenses
One of the big differences in renting and owning is while you’re no longer throwing your money away on rent, you do have other expenses when it comes to maintaining your residence. In addition to thinking about your monthly mortgage payments, you also need to ensure that you can afford repairs, property taxes, and other expenses. If you’re buying a home for the first time, you probably don’t know what to expect. As a general rule of thumb, you should set aside 1% of your home’s value for repairs. For instance, if your home costs $300,000, you should put $3,000 in a savings account every year. Then, when something breaks down, you should have the funds you need to fix it.
With property taxes, you just need to find out what they are and budget for them. Finally, don’t forget closing costs or other fees associated with the mortgage. Talk with your mortgage lender so you know what to expect as you apply for a first home buyer loan.
Make the Largest Down Payment Possible
Putting a small amount of money down is enticing. However, as a first home buyer in Georgia, if you can put more money down then you should. When you make a down payment, you instantly reduce the amount of money you are borrowing, and by extension, you reduce your monthly payments. That, in turn, reduces your stress. Try to make the largest down payment you can, but at the same time, try not to completely deplete your savings account. Ideally, you want some cash on hand in case an unexpected emergency pops up.
Note that if you don’t have the funds to make a large down payment, that’s okay. Home buying programs through the FHA, USDA, and VA make it possible to get a home with a small down payment or no down payment at all.
Remember to Look for a First Home Buyer Program
Being a first home buyer in Georgia is challenging for a lot of people. To make the process easier, there are programs designed just for first time home buyers. When possible, talk with your mortgage lender to see if they can help you find first home buyer assistance.
Pull Your Credit Report Before You Start
Ideally, you may want to pull your credit report before you start shopping for a first time home buyer loan. Then, take some time to fix any issues. If you have judgments or accounts in collections, pay them off. If there are mistakes on your credit report, try to contact the entity that posted that information on your report and have them remove it. Also, see if you can pay down credit card debt as much as possible.
Choosing a First Time Home Buyer Loan with BrightPath Mortgage
As a first home buyer in Georgia, there are many ways you can prepare yourself to take away the stress of applying for a first home buyer loan. From first home buyer assistance to home buying programs that fit your goals at BrightPath, we work hard to make the process of buying a home for the first time as easy as possible for our clients. To learn more, contact us today.