Pages Navigation Menu

Things to do in Orange County for OC Moms

Categories Navigation Menu

Financial Tips For Families Who Are Purchasing Their First Home

Are you on the market for your first ever home? If so, you’re likely feeling a mixture of excitement and anxiety. This is a huge financial commitment, and it’s important to make sure that you’re prepared for it. In this article, we will discuss some financial tips for families who are purchasing their first home. By following these tips, you can ensure that the purchase goes as smoothly as possible!

Get Your Pre-Approval For Mortgage

One of the first steps when buying a new home is to get pre-approved for a mortgage. This will give you an idea of how much money you’ll be able to borrow, and it will also lock in an interest rate for you. It’s important to compare mortgage rates from multiple lenders before choosing one, as they can vary significantly. You should also consider getting pre-approved for a mortgage insurance policy. This will protect your home in the event that you’re unable to make your payments. 

Once you’ve been pre-approved, it’s time to start looking for homes! It’s important to keep your budget in mind when doing this. Don’t fall in love with a home that’s too pricey for your budget.

Create A Budget

It’s also important to create a budget for yourself when it comes to your first home purchase. This will help you stay within your limits, and it will also help you figure out how much money you’ll need for a down payment, closing costs, and other expenses. It’s a good idea to start saving for these things as soon as possible. 

For example,  you may want to consider setting aside money for a down payment in a separate savings account. This will allow you to access it quickly if needed. So, if you have a budget of $2000 per month, you may want to save $500 per month for your down payment.

Namely, in case you will need a lot of upgrades or repairs after you move in, be sure that you save some cash for it as well.

Get Help With Your Down Payment

If you’re having a hard time saving up for a down payment, there are options available to you. For example, many lenders offer help with down payments. This can come in the form of a gift, a loan, or even a grant. You may also be able to get help from your family or friends

Another option when it comes to your first home purchase is to look into government programs. The U.S. Department of Housing and Urban Development (HUD) offers a number of programs that can help you purchase a home. These include the Federal Housing Administration (FHA) loan program, the Veterans Affairs (VA) loan program, and the Homeownership Assistance Program. Therefore, do not hesitate to ask your lender about these programs.

Get Your Home Inspected

It’s important to have your home inspected before you buy it. This will help you avoid any costly repairs down the road. You should also make it a habit to regularly budget for maintenance and repair costs, as these can add up over time. Namely, first-time homebuyers should anticipate setting aside one to three percent of their home’s purchase price annually for maintenance and repairs. Namely, you can expect your first year’s costs to be on the high end of this range since there are typically a few one-time “new homeowner” expenses, such as painting or buying new appliances.

Get An Adequate Homeowners Insurance Policy

Yet another financial tip for first-time homebuyers is to make sure you have an adequate homeowners insurance policy. This will protect your home in the event of a natural disaster or burglary. It can be expensive, however, you are guaranteed a peace of mind.

The insurance policy should also cover the cost of your belongings. So, if you have any expensive jewelry or art, you’ll want to make sure that it’s included in your policy. This will help you replace it if it’s ever lost or stolen. In addition, you should make sure that your policy covers liability so you can be protected in the event that someone is injured on your property.

Review Your Finances Regularly

Finally, during your first home purchase, it’s important to review your finances regularly. This will help you stay on track all the time and make sure that you are still able to afford your home. It’s a good idea to do this at least once a year. Moreover, reviewing your finances will also help you identify any areas where you may be able to save money. For example, you may be able to refinance your mortgage at a lower interest rate, or you may be able to get a home equity loan with a lower interest rate. In that way, you can use your home to help you pay for other expenses, such as college tuition or a new car.

By following these financial tips, you can ensure that your first home purchase goes smoothly. And, if you ever have any questions, be sure to talk to your lender. They will be able to help you navigate the mortgage process and answer any of your questions.

 

Sign Up for Our Newsletter
Connect With Us


Leave a Comment

Your email address will not be published. Required fields are marked *