Consider Your Budget
The Perfect Payment
Your Monthly Mortgage
A monthly mortgage payment consists of the following:
- Principal and Interest
- Property Taxes
- Homeowners Insurance
- Private Mortgage Insurance (PMI) – if applicable
Considering The Extras
It's important to make sure you'll be able to afford other expenses associated with your home. Estimate the following costs (if applicable):
- Mortgage Insurance
- County Taxes
- Condo Fees
- Homeowners Association (HOA) Dues
- Utilities and Fees
- Exterior and Interior Home Repairs
- Maintenance (annual checks for water heater, heat pump, chimney, gutters, etc.)
See below for a list of potential expenses associated with owning a home.
Down Payment Options
Depending on your credit scores, your down payment can be as low as 3% of the purchase price of the home (Example: $150,000 Purchase Price = $4,500 down payment). Acceptable sources of down payment money can come from your bank account, investment accounts, a 401K or even a gift from a family member.
See your mortgage consultant for details.
Private Mortgage Insurance
Your lender will require you to get mortgage insurance if your down payment is less than 20% of the appraised value or sale price of your new home. A mortgage insurance policy protects your lender in the event that you default on the payments. As a borrower, you pay the premiums, and the lender is a beneficiary.
See your mortgage consultant for details.
Pre-Approval
Once you're sure you want a house, it's time to find out how much you can actually spend. The best way to do this is to get pre-approved for a mortgage. We offer fast and free pre-approvals that will help you and your REALTOR® shop for the right home to fit your needs.
Before applying for a mortgage, check out our checklist and additional resources.
Checkpoint
Before shopping for your first home, make sure you’re checking off these boxes to know you’re making the right decision.
Are You Ready To Buy A Home?
- Be sure that buying a home is the right choice for you.
- Know how much you can afford. This includes the down payment and all extra costs associated with owning a home.
- Be pre-approved for your mortgage.
- Be working with a real estate agent you trust.
Shopping For A Home
Communication is important when it comes to shopping for your first home. Be sure to tell your REALTOR® what you’re looking for in a house.
Important factors to consider:
- Single-Family Home
- Condo
- Safety
- Traffic
- Schools
- Privacy
See this additional list of what things you should consider when buying a house.
You Found The Perfect Home. Now What?
Make sure the asking price of the house is fair/at market value. Not sure how to tell? Ask the following questions:
- Has the house been on the market for a long time?
- Has the listing price dropped?
- Are prices of similar homes lower?
If the answer to any of these is yes, the asking price may be too high. At this time, revisit what you want in a home to make sure it's the best fit, and/or adjust your offer price. Consult your REALTOR® for advice.