Tips All First Time Homebuyers Should Know

Buying your first home can be exciting. But it can also be overwhelming, especially when you see how expensive homes can be and available ones getting sold in a matter of weeks. Wright Homes can help make the process seem a lot easier.

With the trend of the real estate market today, you might buy a house out of impulse, which could ruin your financial goals. And keep you paying your mortgage even after you retire.

“So, what do I do?” Good question. Below are tips first-time homebuyers should know before deciding on buying a house.

Pay All Of Your Debts and Build an Emergency Fund

This may sound like it’s not a first-time homebuyer’s tip. But it’s one that you should remember. Owning a house is expensive. It’s even more expensive than just renting.

Why? Because when you have a home, everything will be your responsibility. All the cleaning. All the mess and mishaps. All the maintenance. And all of that can add up without you knowing. So before you buy a house, ensure that you are debt-free and have an emergency fund enough to last you for at least three months.

Use The 25% Rule

Budget is everything. So before you get emotionally attached because you have found the perfect house, check your budget first.

To guide you in your expenses, ensure that your monthly housing costs are no more than 25% of your monthly salary. This includes taxes, insurance, HOA fees, etc.

“But wouldn’t this limit the property that I want to buy?” That’s exactly it. What use would having a roof over your head if you can’t afford to eat?

Save Up For a 10-20% Down Payment.

Not everyone is drowning in cash. So if you can’t buy a house at full price, save at least for a 10-20% down payment. Since you are a first-time home buyer, it would be best for you to go for a 15-year term mortgage with a fixed rate and 10-20% down payment. Now you might be thinking, “Isn’t this going to cost me more in monthly expenses?” and you are right. It does.

But this also ensures that you’ll be able to pay your mortgage in a much shorter time. So after 15 years, you will have completely owned your house, and you can finally work on building your wealth with no hassles. A 15-year term will also have lower interests.

And because it has a fixed rate, the interest will be the same until you finish your loan.

Don’t Forget About Closing Costs

Aside from the down payment, you will also need to keep in mind closing costs for a new construction home. Typically, closing costs are 3-4% of the home’s purchase price. Your lender will give you a specific number so you’ll know what to bring on closing day. The fee will pay the processes in home buying, which includes:

● Credit Report

● Attorney

● Home Inspection

● Appraisal

● Homeowners insurance

Find a Home for Sale within Your Budget

Once you have done all the necessary preparations, you can now search for your dream house. But remember to stay within your budget. It would be best to go to trusted brokers, like Altrua Financial, to ensure that you are getting your money’s worth. You can send them pictures of what kind of house you are looking for, and they’ll use their multiple listing service to find something similar that will fit your taste.

They’ll also help you find the best deals on houses to help you in your savings.


Having your own house is one of the best feelings in the world. It’s one of the many achievements people strive for in life. But being a first-time homeowner can be

overwhelming. So it’s essential to follow the tips above to ensure you are prepared and making the right decisions.

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