Unlocking the Door to Your First Home: A Guide for First-Time Buyers

Buying a home can be a combination of exciting, surreal, stressful, and unfamiliar. With all of those emotions combined, it’s important to make sure you’re well-educated on the dos, don'ts, and everything in between. We’re here to provide you with a comprehensive guide for first-time home buyers, so you can feel confident starting the journey!

1. Budget for surprise expenses

Any homeowner will attest to the fact that there are hidden expenses in the home buying process. Some of these expenses may include renovations, inspection fees, maintenance fees, and items that need replacing/fixing. Plan for extra when you’re in the process of saving up and budgeting for your first home. When considering unexpected expenses, it's crucial to allocate a budget. Here are some tips to help you reframe your approach. 

2. Calculate monthly costs before making the decision

While your mortgage is a big chunk of your monthly expenses, there are other costs that vary based on house size, location, and more. For example, if the house you’re looking at is further away from your workplace than you hoped, factor in how much you’d be spending on gas to commute each day. Another thing to consider would be utility bills – these can depend on how old the house is, the size of the house, and more.

3. Talk to a mortgage lender to get pre-approved

At Farmers & Merchants State Bank, we offer free pre-approvals! This is a great way to start the home search because you’re able to shop around knowing that you can afford the mortgage. Our team can also talk you through the home loan process and help you decide which program to choose based on your needs.

4. Ask for help and get your questions answered by a professional

Jumping into the home buying process can be scary if it’s unfamiliar. However, there are so many great resources out there to put the process into simplified terms. Reach out to our team and we’d be happy to schedule a virtual or in-person meeting with you to discuss your options and help you better understand each step of the journey.

5. Narrow down your options

Once you’re pre-qualified and know the price range you’re looking at, it’s time to start shopping! Be sure to be specific with your real estate agent so they know what your priorities are. Some things you may want to consider include:

• Is there a lot of street traffic outside the house?
• What’s the neighborhood like?
• What’s the monthly cost of utilities?
• How long has the house been on the market?
• Have there been any additions or renovations?
• How much do homes sell for in the area?

Once you get these questions answered, you’ll have a lot more confidence in saying “yes” to your dream home!

Are you feeling less intimidated and more enthusiastic about the prospect of purchasing your first home? Are you prepared to begin the process of searching for a home? We are here to help! Our team of lenders are only a phone call away, so don’t hesitate to reach out when you’re ready to get started.