BUYER'S GUIDE

You’ll definitely want to have some money tucked away to ensure that the home buying process goes smoothly for you. The first order of business? Prepare your down payment. If your credit is in good shape, you may be able to pay as little as 3% down; speak to a financial advisor or real estate agent to get a good idea of what your down payment might be. 

You should also be aware of any financial factors that may crop up. These typically include things like closing costs, which are the fees you pay to finalize your mortgage. Usually, this will cost you between 2% and 5% of the loan amount. Then, of course, there will be various moving expenses to plan for. Plan on renting a U-Haul or hiring movers, and look up what either of these will cost. Also, prepare for any expenses upon moving into the new home. Perhaps you know you’ll want to make some repairs or upgrades right away, and you’ll likely want to invest in some great new furniture and decor.

There are a variety of mortgage options that you might qualify for, offering a variety of down payment requirements. These might include USDA loans, which are guaranteed by the US Department of Agriculture and are intended for rural homebuyers, requiring no down payment. There are also VA loans guaranteed by the Department of Veterans Affairs that are available for current military service members and veterans. These also require no down payment.

Most homebuyers will choose a 30-year fixed-rate mortgage. In this situation, the mortgage is paid off within 30 years while the interest rate stays the same. You might also choose a 15-year loan with a lower interest rate, but these will yield higher monthly payments.

When you’ve got a great real estate agent on your side, the home buying process can become much simpler and far less stressful. Make sure you’re choosing a realtor who has plenty of experience and knowledge, particularly related to your specific area. 

Referrals from people who have recently bought homes are always helpful — talk to your friends who have recently purchased homes and see if they have any recommendations. Interview several agents before making your choice, and you can also request references from each agent.