Purchasing your first home is an exciting milestone! But making that first-time home purchase can also feel overwhelming with so much to learn and prepare. Here’s a guide on everything you’ll need financially and document-wise in order to buy a house for the first time as a first-time homeowner.
Down Payment Funds
Most lenders require a down payment of at least 3-20% of the total home price. Save up enough for a 20% down payment if possible to avoid having to pay private mortgage insurance. Shop around with different lenders to see offers and interest rates.
Proof of Income & Employment
Lenders want to see consistent income to prove you can afford mortgage payments. Provide recent pay stubs, W-2s, tax returns, and a written verification of employment. Self-employed applicants should supply a couple years of tax returns.
Favorable Credit Score
Aim for a credit score of at least 620 or higher before applying for a mortgage. Pay down debts, dispute any errors on your credit report, and avoid taking out new loans that may lower your score. Maintain low credit card balances.
Debt-to-Income Ratio
Lenders analyze your debt-to-income ratio (DTI) to confirm you can manage mortgage payments plus debts. Try to have a DTI of 36% or lower. Get copies of all outstanding loan statements to calculate your DTI accurately.
Down Payment Savings
In addition to your actual home down payment, closing costs and upfront prepaid property taxes for the year will be due at closing. Budget and save around 4-5% of the home’s price to cover these fees.
Loan Pre-Approval Letter
Get pre-approved from multiple lenders after you have your financials in order. Having a pre-approval letter in hand shows sellers you’re qualified and a serious buyer.
Realtor Representation
Find an experienced, responsive real estate agent who can advise first-timers on neighborhoods, listings, negotiating, paperwork, and more. Realtors have unique access to MLS listings you can’t see yourself.
Homeowners Insurance Quote
Shop around for quotes a month before closing so you can supply the policy information. Avoid gaps in coverage between closing on your home and when existing policies expire.
Inspection & Appraisal
After an offer is accepted, the lender orders a home appraisal to verify market value. Plan for an inspection contingency in your offer to identify any issues requiring negotiation or repairs by the sellers.
Patience & Persistence
With low housing inventory, it may take months to find “the one” and require bidding wars. Stay persistent through multiple rejected offers before you finally land a home. Have finances ready so you can act quickly when the right opportunity comes.
Take the time upfront to check all of these first-time home buyer boxes, and you’ll be in a strong position to purchase your dream house! Stay diligent as deals can fall through along the way.
Buy a House For the First Time – What Realtor Can Help First-Time Home Buyers in Florida?
If you’re looking for the top realtor in Ocala, Florida and all of North Central Florida, look no further than Scott Coldwell and Your Home Sold Guaranteed Realty - Coldwell Real Estate Services. We’re experts in the North Central Florida housing market. With years of experience helping all home buyers, including first-time home buyers, we know all the historical market patterns and current trends in the area.
Plus, our unique buyer guarantees like the Buy it Back Guarantee and Move Up Guarantee make purchasing a home risk-free. Our team offers these guarantees because we believe you should have a stress-free home-buying experience.
Above all, we’re committed to providing high-quality customer service, exceptional communication, and expert negotiation skills. To learn more about working with Your Home Sold Guaranteed Realty - Coldwell Real Estate Services to buy a home in Florida, call 352-290-3512, or fill out the form on this page.
To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!
