Before you start the hunt for a real estate agent and begin visiting open houses, it’s important to know how much you can afford. The road to a perfect house starts with prequalification and pre-approval.
- Prequalification: An informal estimate of the amount of a home loan you can get, taking note of your income and other information.
- Pre-Approval: An official document from your mortgage lender stating exactly how much loan money you can get based on your financial background.
2. Look Beyond Your Own Backyard
When shopping for a forever home, it’s important to be aware of what’s happening in the surrounding area. Is your neighborhood a new build, where the potential for further construction is higher? How important does the ranking of a specific school district correlate to your current and future wants?
Better schools can often mean higher home prices and more competition – consider all of your options and prioritize what’s important!
3. Start Building Up Your Savings and Your Budget
Building a budget is the ideal steppingstone when building savings for larger purchases, like a new home! The main upfront costs to consider is a down payment, which can be as low as 3% to as high as 20%, depending on the type of loan.
Closing costs are the next major fee needed to finalize a mortgage and get the keys to your new home. Closing costs can range from 2% to 6% of the loan amount in addition to the down payment.
Finally, budget out a little extra for moving costs, as well as any upfront repairs or upgrades needed to make your home ready to go!
4. Research those Pesky Property Taxes
A hidden expense that creeps up on new homeowners is property taxes. Research the property taxes associated with the home you are about to buy, or if the current owner has exemptions that make it lower. Also keep in mind that property taxes may rise over time, so leave some room in the budget to cover the unknown.
5. Don’t Move Forward without an Inspection!
Attending a walk-through and undergoing a thorough inspection are key before moving forward with a home purchase. You need to know exactly what your home will need, or perhaps an adjustment in price is needed if repairs are substantial.
6. Let’s Get Physical–Copies of Your Paperwork, that is
Purchasing a home comes with a mountain of paperwork, including the closing disclosure, deed, and future mortgage statements. We recommend keeping physical copies somewhere safe and letting anyone else listed on the loan know where they can access them in case of an emergency.
7. Research, Research, Research
One of the perks of buying your first home is the assistance programs available to help with the costs – so take advantage of them! Tax credits, low-interest-rate loans, and forgivable loans are available for those meeting certain eligibility requirements. Do your research and don’t let the potential savings go to waste.
It’s Closing Time–or Time to Keep Looking
Whether you are venturing down the path of a first-time home buyer in NC or have gone to the Golden State to find your dream home, making your first big budget purchase can be both terrifying and thrilling!
At Auto Money Title Loans, our goal is to help you feel prepared to invest in your future and financially free to do just that. Good luck on finding your forever home!
Sources: USA.gov, HUD.gov, & New America Funding.
Published April 2024
More Helpful Resources
How to Start Building Credit at 20 Years Old
How to Build a 50/30/20 Budget Spreadsheet
Your Guide on How to Budget for Your First Apartment
How a Life Insurance Policy Can Help Set Your Child Up for Financial Success
Navigating Your Student Loans and Repayment? Here, Have a Free Emergency Pizza
Best Popular Spots for Birthday Freebies: An A-to-Z Guide
A Beginner’s Guide to Investing in the Stock Market
Top 10 Best High-Yield Savings Accounts: Making Your Money Work for You
Reviewed by Executive Team Member at Auto Money
Auto Money offers over 80 locations across the Southeast for individuals seeking extra cash for last-minute expenses like auto repairs, wedding costs, medical bills, and more. As title loan lenders, we practice transparency and compliance with codes and regulatory statutes presented by the SC Department of Consumer Affairs & SC Board of Financial Institutions, Consumer Finance Division.
*For Educational Purposes Only: The information provided by Auto Money is for educational purposes only and is not intended as legal advice. For legal issues, you should consult your own attorney or seek advice from a legal professional. All financial advice should be consulted with a certified tax expert or fiduciary.
The information posted was accurate at the time of posting, but archived posts may not reflect current policies. However, this information may differ from what you find on the website of a financial institution, service provider, or specific product. When considering offers, please review the financial institution’s Terms and Conditions and contact them directly for any updates and detailed information about their financial products and services.
The opinions expressed here are solely those of the author and are not influenced by any bank, credit card issuer, or other company, unless clearly stated as part of a sponsorship. All information, including rates and fees, is accurate as of the publication date and is updated based on information from our partners. Some offers mentioned may not be available through our website. Please directly contact the financial institution you’re interested in for any financial transactions.
Editor Policy: The information in this article represents the educated opinion of our editorial team, based on independent research. The banks, lenders, and credit card companies mentioned in this post are not responsible for any content posted on this site and do not endorse or guarantee any reviews. The information was accurate at the time of posting, but archived posts may not reflect current policies.
- Federal tax credit eligibility
- Grants or forgivable loans for down payment assistance and closing costs
Who is Considered a First-Time Home Buyer?
According to the U.S. Department of Housing and Urban Development (HUD), first-time home buyer qualifications include a person who meets any of the following conditions:
- A person who has not owned a principal residence for three years
- A single parent who has only owned a home with a former spouse while married
- A displaced homemaker who has only owned a home with a spouse
- A person who has owned a principal residence not permanently affixed to a permanent foundation (mobile homeowners)
- A person who has only owned a property not in compliance with state, local, or model building codes and that the cost of repairs surpasses its value
Individuals who may be classified as first-time home buyers include mobile homeowners, single parents re-entering the workforce, individuals who left their job to care for a family member, and renters.
Are you Ready to Buy a Home? Here’s What to Ask Yourself
Is Your Wallet Ready for a Major Investment?
Buying a home is a major investment, so it’s important to ask yourself if your finances are prepared for not only the purchase but the expenses that come with owning a home.
The first aspect of your financial health to consider is your savings. Ensure that you have three to six months of living expenses saved up in a “worst-case scenario” outcome. Consider a certificate of deposit or a high-yield savings account to keep your money growing and working for you.
Next, review your budget and spending to see how much you will need to allocate for a mortgage payment. This will help give a realistic view of where your money is going and how much you can afford. Finally, review your credit score to ensure it is in good standing.
If not, make a conscious effort to pay bills on time and work to lower your debt before moving forward with purchasing a home.
How Do You Picture Your Dream Home?
Purchasing a home is not like purchasing a new pair of shoes – if it doesn’t work for you, you can’t just return it and get store credit. It’s important to prioritize your needs, wants, and non-negotiables from the neighborhood down to the kitchen appliances.
Ask yourself what type of dream home you picture yourself in. Is a condominium more suitable to your lifestyle or will a single-family home do the trick? List out your homeownership goals and consider how your home will build with your future endeavors.
How Much Mortgage Do You Qualify For?
A mortgage is a type of loan used to purchase real estate, such as a home or plot of land. Before you start scouring Zillow for listings, it’s important to have an idea of how much a lender will give you to purchase your first home.
Lenders will factor in current debt, monthly income, and your length of employment to determine the loan amount. Shop around for a lender to find favorable interest rates and fees to find what works for you.
How Much Can You Actually Afford?
A common mistake among first-time home buyers is borrowing too much money, leaving you with little left over to cover other basic necessities and even wants.
Look at the total cost of the house, considering other fees including property taxes and homeowner’s insurance, along with closing cost fees. House shopping with a smaller budget than what you are approved for will give you more flexibility with finances and keep you active in a competitive housing market.
Who Helps You Through the Homebuying Process?
Finding a real estate agent you trust to help you on the search for your dream home will be one of the most important relationships in your life. They will help you navigate the housing market, finding homes for you that suit your needs and are within budget.
When you’ve settled on a home, they will negotiate the purchase process and assist in making an offer, getting a loan, and completing the necessary paperwork to make your dream home a reality.
Top Seven First-time Home Buyer Tips
1. Pre-Qualification, Pre-Approval, Perfection!
Before you start the hunt for a real estate agent and begin visiting open houses, it’s important to know how much you can afford. The road to a perfect house starts with prequalification and pre-approval.
- Prequalification: An informal estimate of the amount of a home loan you can get, taking note of your income and other information.
- Pre-Approval: An official document from your mortgage lender stating exactly how much loan money you can get based on your financial background.
2. Look Beyond Your Own Backyard
When shopping for a forever home, it’s important to be aware of what’s happening in the surrounding area. Is your neighborhood a new build, where the potential for further construction is higher? How important does the ranking of a specific school district correlate to your current and future wants?
Better schools can often mean higher home prices and more competition – consider all of your options and prioritize what’s important!
3. Start Building Up Your Savings and Your Budget
Building a budget is the ideal steppingstone when building savings for larger purchases, like a new home! The main upfront costs to consider is a down payment, which can be as low as 3% to as high as 20%, depending on the type of loan.
Closing costs are the next major fee needed to finalize a mortgage and get the keys to your new home. Closing costs can range from 2% to 6% of the loan amount in addition to the down payment.
Finally, budget out a little extra for moving costs, as well as any upfront repairs or upgrades needed to make your home ready to go!
4. Research those Pesky Property Taxes
A hidden expense that creeps up on new homeowners is property taxes. Research the property taxes associated with the home you are about to buy, or if the current owner has exemptions that make it lower. Also keep in mind that property taxes may rise over time, so leave some room in the budget to cover the unknown.
5. Don’t Move Forward without an Inspection!
Attending a walk-through and undergoing a thorough inspection are key before moving forward with a home purchase. You need to know exactly what your home will need, or perhaps an adjustment in price is needed if repairs are substantial.
6. Let’s Get Physical–Copies of Your Paperwork, that is
Purchasing a home comes with a mountain of paperwork, including the closing disclosure, deed, and future mortgage statements. We recommend keeping physical copies somewhere safe and letting anyone else listed on the loan know where they can access them in case of an emergency.
7. Research, Research, Research
One of the perks of buying your first home is the assistance programs available to help with the costs – so take advantage of them! Tax credits, low-interest-rate loans, and forgivable loans are available for those meeting certain eligibility requirements. Do your research and don’t let the potential savings go to waste.
It’s Closing Time–or Time to Keep Looking
Whether you are venturing down the path of a first-time home buyer in NC or have gone to the Golden State to find your dream home, making your first big budget purchase can be both terrifying and thrilling!
At Auto Money Title Loans, our goal is to help you feel prepared to invest in your future and financially free to do just that. Good luck on finding your forever home!
Sources: USA.gov, HUD.gov, & New America Funding.
Published April 2024
More Helpful Resources
How to Start Building Credit at 20 Years Old
How to Build a 50/30/20 Budget Spreadsheet
Your Guide on How to Budget for Your First Apartment
How a Life Insurance Policy Can Help Set Your Child Up for Financial Success
Navigating Your Student Loans and Repayment? Here, Have a Free Emergency Pizza
Best Popular Spots for Birthday Freebies: An A-to-Z Guide
A Beginner’s Guide to Investing in the Stock Market
Top 10 Best High-Yield Savings Accounts: Making Your Money Work for You
Reviewed by Executive Team Member at Auto Money
Auto Money offers over 80 locations across the Southeast for individuals seeking extra cash for last-minute expenses like auto repairs, wedding costs, medical bills, and more. As title loan lenders, we practice transparency and compliance with codes and regulatory statutes presented by the SC Department of Consumer Affairs & SC Board of Financial Institutions, Consumer Finance Division.
*For Educational Purposes Only: The information provided by Auto Money is for educational purposes only and is not intended as legal advice. For legal issues, you should consult your own attorney or seek advice from a legal professional. All financial advice should be consulted with a certified tax expert or fiduciary.
The information posted was accurate at the time of posting, but archived posts may not reflect current policies. However, this information may differ from what you find on the website of a financial institution, service provider, or specific product. When considering offers, please review the financial institution’s Terms and Conditions and contact them directly for any updates and detailed information about their financial products and services.
The opinions expressed here are solely those of the author and are not influenced by any bank, credit card issuer, or other company, unless clearly stated as part of a sponsorship. All information, including rates and fees, is accurate as of the publication date and is updated based on information from our partners. Some offers mentioned may not be available through our website. Please directly contact the financial institution you’re interested in for any financial transactions.
Editor Policy: The information in this article represents the educated opinion of our editorial team, based on independent research. The banks, lenders, and credit card companies mentioned in this post are not responsible for any content posted on this site and do not endorse or guarantee any reviews. The information was accurate at the time of posting, but archived posts may not reflect current policies.
- A static monthly mortgage payment
- Federal tax credit eligibility
- Grants or forgivable loans for down payment assistance and closing costs
Who is Considered a First-Time Home Buyer?
According to the U.S. Department of Housing and Urban Development (HUD), first-time home buyer qualifications include a person who meets any of the following conditions:
- A person who has not owned a principal residence for three years
- A single parent who has only owned a home with a former spouse while married
- A displaced homemaker who has only owned a home with a spouse
- A person who has owned a principal residence not permanently affixed to a permanent foundation (mobile homeowners)
- A person who has only owned a property not in compliance with state, local, or model building codes and that the cost of repairs surpasses its value
Individuals who may be classified as first-time home buyers include mobile homeowners, single parents re-entering the workforce, individuals who left their job to care for a family member, and renters.
Are you Ready to Buy a Home? Here’s What to Ask Yourself
Is Your Wallet Ready for a Major Investment?
Buying a home is a major investment, so it’s important to ask yourself if your finances are prepared for not only the purchase but the expenses that come with owning a home.
The first aspect of your financial health to consider is your savings. Ensure that you have three to six months of living expenses saved up in a “worst-case scenario” outcome. Consider a certificate of deposit or a high-yield savings account to keep your money growing and working for you.
Next, review your budget and spending to see how much you will need to allocate for a mortgage payment. This will help give a realistic view of where your money is going and how much you can afford. Finally, review your credit score to ensure it is in good standing.
If not, make a conscious effort to pay bills on time and work to lower your debt before moving forward with purchasing a home.
How Do You Picture Your Dream Home?
Purchasing a home is not like purchasing a new pair of shoes – if it doesn’t work for you, you can’t just return it and get store credit. It’s important to prioritize your needs, wants, and non-negotiables from the neighborhood down to the kitchen appliances.
Ask yourself what type of dream home you picture yourself in. Is a condominium more suitable to your lifestyle or will a single-family home do the trick? List out your homeownership goals and consider how your home will build with your future endeavors.
How Much Mortgage Do You Qualify For?
A mortgage is a type of loan used to purchase real estate, such as a home or plot of land. Before you start scouring Zillow for listings, it’s important to have an idea of how much a lender will give you to purchase your first home.
Lenders will factor in current debt, monthly income, and your length of employment to determine the loan amount. Shop around for a lender to find favorable interest rates and fees to find what works for you.
How Much Can You Actually Afford?
A common mistake among first-time home buyers is borrowing too much money, leaving you with little left over to cover other basic necessities and even wants.
Look at the total cost of the house, considering other fees including property taxes and homeowner’s insurance, along with closing cost fees. House shopping with a smaller budget than what you are approved for will give you more flexibility with finances and keep you active in a competitive housing market.
Who Helps You Through the Homebuying Process?
Finding a real estate agent you trust to help you on the search for your dream home will be one of the most important relationships in your life. They will help you navigate the housing market, finding homes for you that suit your needs and are within budget.
When you’ve settled on a home, they will negotiate the purchase process and assist in making an offer, getting a loan, and completing the necessary paperwork to make your dream home a reality.
Top Seven First-time Home Buyer Tips
1. Pre-Qualification, Pre-Approval, Perfection!
Before you start the hunt for a real estate agent and begin visiting open houses, it’s important to know how much you can afford. The road to a perfect house starts with prequalification and pre-approval.
- Prequalification: An informal estimate of the amount of a home loan you can get, taking note of your income and other information.
- Pre-Approval: An official document from your mortgage lender stating exactly how much loan money you can get based on your financial background.
2. Look Beyond Your Own Backyard
When shopping for a forever home, it’s important to be aware of what’s happening in the surrounding area. Is your neighborhood a new build, where the potential for further construction is higher? How important does the ranking of a specific school district correlate to your current and future wants?
Better schools can often mean higher home prices and more competition – consider all of your options and prioritize what’s important!
3. Start Building Up Your Savings and Your Budget
Building a budget is the ideal steppingstone when building savings for larger purchases, like a new home! The main upfront costs to consider is a down payment, which can be as low as 3% to as high as 20%, depending on the type of loan.
Closing costs are the next major fee needed to finalize a mortgage and get the keys to your new home. Closing costs can range from 2% to 6% of the loan amount in addition to the down payment.
Finally, budget out a little extra for moving costs, as well as any upfront repairs or upgrades needed to make your home ready to go!
4. Research those Pesky Property Taxes
A hidden expense that creeps up on new homeowners is property taxes. Research the property taxes associated with the home you are about to buy, or if the current owner has exemptions that make it lower. Also keep in mind that property taxes may rise over time, so leave some room in the budget to cover the unknown.
5. Don’t Move Forward without an Inspection!
Attending a walk-through and undergoing a thorough inspection are key before moving forward with a home purchase. You need to know exactly what your home will need, or perhaps an adjustment in price is needed if repairs are substantial.
6. Let’s Get Physical–Copies of Your Paperwork, that is
Purchasing a home comes with a mountain of paperwork, including the closing disclosure, deed, and future mortgage statements. We recommend keeping physical copies somewhere safe and letting anyone else listed on the loan know where they can access them in case of an emergency.
7. Research, Research, Research
One of the perks of buying your first home is the assistance programs available to help with the costs – so take advantage of them! Tax credits, low-interest-rate loans, and forgivable loans are available for those meeting certain eligibility requirements. Do your research and don’t let the potential savings go to waste.
It’s Closing Time–or Time to Keep Looking
Whether you are venturing down the path of a first-time home buyer in NC or have gone to the Golden State to find your dream home, making your first big budget purchase can be both terrifying and thrilling!
At Auto Money Title Loans, our goal is to help you feel prepared to invest in your future and financially free to do just that. Good luck on finding your forever home!
Sources: USA.gov, HUD.gov, & New America Funding.
Published April 2024
More Helpful Resources
How to Start Building Credit at 20 Years Old
How to Build a 50/30/20 Budget Spreadsheet
Your Guide on How to Budget for Your First Apartment
How a Life Insurance Policy Can Help Set Your Child Up for Financial Success
Navigating Your Student Loans and Repayment? Here, Have a Free Emergency Pizza
Best Popular Spots for Birthday Freebies: An A-to-Z Guide
A Beginner’s Guide to Investing in the Stock Market
Top 10 Best High-Yield Savings Accounts: Making Your Money Work for You
Reviewed by Executive Team Member at Auto Money
Auto Money offers over 80 locations across the Southeast for individuals seeking extra cash for last-minute expenses like auto repairs, wedding costs, medical bills, and more. As title loan lenders, we practice transparency and compliance with codes and regulatory statutes presented by the SC Department of Consumer Affairs & SC Board of Financial Institutions, Consumer Finance Division.
*For Educational Purposes Only: The information provided by Auto Money is for educational purposes only and is not intended as legal advice. For legal issues, you should consult your own attorney or seek advice from a legal professional. All financial advice should be consulted with a certified tax expert or fiduciary.
The information posted was accurate at the time of posting, but archived posts may not reflect current policies. However, this information may differ from what you find on the website of a financial institution, service provider, or specific product. When considering offers, please review the financial institution’s Terms and Conditions and contact them directly for any updates and detailed information about their financial products and services.
The opinions expressed here are solely those of the author and are not influenced by any bank, credit card issuer, or other company, unless clearly stated as part of a sponsorship. All information, including rates and fees, is accurate as of the publication date and is updated based on information from our partners. Some offers mentioned may not be available through our website. Please directly contact the financial institution you’re interested in for any financial transactions.
Editor Policy: The information in this article represents the educated opinion of our editorial team, based on independent research. The banks, lenders, and credit card companies mentioned in this post are not responsible for any content posted on this site and do not endorse or guarantee any reviews. The information was accurate at the time of posting, but archived posts may not reflect current policies.
Some benefits available to a first-time homebuyer include:
- Property tax and interest deductions
- Potential lower or no down payment loans
- A static monthly mortgage payment
- Federal tax credit eligibility
- Grants or forgivable loans for down payment assistance and closing costs
Who is Considered a First-Time Home Buyer?
According to the U.S. Department of Housing and Urban Development (HUD), first-time home buyer qualifications include a person who meets any of the following conditions:
- A person who has not owned a principal residence for three years
- A single parent who has only owned a home with a former spouse while married
- A displaced homemaker who has only owned a home with a spouse
- A person who has owned a principal residence not permanently affixed to a permanent foundation (mobile homeowners)
- A person who has only owned a property not in compliance with state, local, or model building codes and that the cost of repairs surpasses its value
Individuals who may be classified as first-time home buyers include mobile homeowners, single parents re-entering the workforce, individuals who left their job to care for a family member, and renters.
Are you Ready to Buy a Home? Here’s What to Ask Yourself
Is Your Wallet Ready for a Major Investment?
Buying a home is a major investment, so it’s important to ask yourself if your finances are prepared for not only the purchase but the expenses that come with owning a home.
The first aspect of your financial health to consider is your savings. Ensure that you have three to six months of living expenses saved up in a “worst-case scenario” outcome. Consider a certificate of deposit or a high-yield savings account to keep your money growing and working for you.
Next, review your budget and spending to see how much you will need to allocate for a mortgage payment. This will help give a realistic view of where your money is going and how much you can afford. Finally, review your credit score to ensure it is in good standing.
If not, make a conscious effort to pay bills on time and work to lower your debt before moving forward with purchasing a home.
How Do You Picture Your Dream Home?
Purchasing a home is not like purchasing a new pair of shoes – if it doesn’t work for you, you can’t just return it and get store credit. It’s important to prioritize your needs, wants, and non-negotiables from the neighborhood down to the kitchen appliances.
Ask yourself what type of dream home you picture yourself in. Is a condominium more suitable to your lifestyle or will a single-family home do the trick? List out your homeownership goals and consider how your home will build with your future endeavors.
How Much Mortgage Do You Qualify For?
A mortgage is a type of loan used to purchase real estate, such as a home or plot of land. Before you start scouring Zillow for listings, it’s important to have an idea of how much a lender will give you to purchase your first home.
Lenders will factor in current debt, monthly income, and your length of employment to determine the loan amount. Shop around for a lender to find favorable interest rates and fees to find what works for you.
How Much Can You Actually Afford?
A common mistake among first-time home buyers is borrowing too much money, leaving you with little left over to cover other basic necessities and even wants.
Look at the total cost of the house, considering other fees including property taxes and homeowner’s insurance, along with closing cost fees. House shopping with a smaller budget than what you are approved for will give you more flexibility with finances and keep you active in a competitive housing market.
Who Helps You Through the Homebuying Process?
Finding a real estate agent you trust to help you on the search for your dream home will be one of the most important relationships in your life. They will help you navigate the housing market, finding homes for you that suit your needs and are within budget.
When you’ve settled on a home, they will negotiate the purchase process and assist in making an offer, getting a loan, and completing the necessary paperwork to make your dream home a reality.
Top Seven First-time Home Buyer Tips
1. Pre-Qualification, Pre-Approval, Perfection!
Before you start the hunt for a real estate agent and begin visiting open houses, it’s important to know how much you can afford. The road to a perfect house starts with prequalification and pre-approval.
- Prequalification: An informal estimate of the amount of a home loan you can get, taking note of your income and other information.
- Pre-Approval: An official document from your mortgage lender stating exactly how much loan money you can get based on your financial background.
2. Look Beyond Your Own Backyard
When shopping for a forever home, it’s important to be aware of what’s happening in the surrounding area. Is your neighborhood a new build, where the potential for further construction is higher? How important does the ranking of a specific school district correlate to your current and future wants?
Better schools can often mean higher home prices and more competition – consider all of your options and prioritize what’s important!
3. Start Building Up Your Savings and Your Budget
Building a budget is the ideal steppingstone when building savings for larger purchases, like a new home! The main upfront costs to consider is a down payment, which can be as low as 3% to as high as 20%, depending on the type of loan.
Closing costs are the next major fee needed to finalize a mortgage and get the keys to your new home. Closing costs can range from 2% to 6% of the loan amount in addition to the down payment.
Finally, budget out a little extra for moving costs, as well as any upfront repairs or upgrades needed to make your home ready to go!
4. Research those Pesky Property Taxes
A hidden expense that creeps up on new homeowners is property taxes. Research the property taxes associated with the home you are about to buy, or if the current owner has exemptions that make it lower. Also keep in mind that property taxes may rise over time, so leave some room in the budget to cover the unknown.
5. Don’t Move Forward without an Inspection!
Attending a walk-through and undergoing a thorough inspection are key before moving forward with a home purchase. You need to know exactly what your home will need, or perhaps an adjustment in price is needed if repairs are substantial.
6. Let’s Get Physical–Copies of Your Paperwork, that is
Purchasing a home comes with a mountain of paperwork, including the closing disclosure, deed, and future mortgage statements. We recommend keeping physical copies somewhere safe and letting anyone else listed on the loan know where they can access them in case of an emergency.
7. Research, Research, Research
One of the perks of buying your first home is the assistance programs available to help with the costs – so take advantage of them! Tax credits, low-interest-rate loans, and forgivable loans are available for those meeting certain eligibility requirements. Do your research and don’t let the potential savings go to waste.
It’s Closing Time–or Time to Keep Looking
Whether you are venturing down the path of a first-time home buyer in NC or have gone to the Golden State to find your dream home, making your first big budget purchase can be both terrifying and thrilling!
At Auto Money Title Loans, our goal is to help you feel prepared to invest in your future and financially free to do just that. Good luck on finding your forever home!
Sources: USA.gov, HUD.gov, & New America Funding.
Published April 2024
More Helpful Resources
How to Start Building Credit at 20 Years Old
How to Build a 50/30/20 Budget Spreadsheet
Your Guide on How to Budget for Your First Apartment
How a Life Insurance Policy Can Help Set Your Child Up for Financial Success
Navigating Your Student Loans and Repayment? Here, Have a Free Emergency Pizza
Best Popular Spots for Birthday Freebies: An A-to-Z Guide
A Beginner’s Guide to Investing in the Stock Market
Top 10 Best High-Yield Savings Accounts: Making Your Money Work for You
Reviewed by Executive Team Member at Auto Money
Auto Money offers over 80 locations across the Southeast for individuals seeking extra cash for last-minute expenses like auto repairs, wedding costs, medical bills, and more. As title loan lenders, we practice transparency and compliance with codes and regulatory statutes presented by the SC Department of Consumer Affairs & SC Board of Financial Institutions, Consumer Finance Division.
*For Educational Purposes Only: The information provided by Auto Money is for educational purposes only and is not intended as legal advice. For legal issues, you should consult your own attorney or seek advice from a legal professional. All financial advice should be consulted with a certified tax expert or fiduciary.
The information posted was accurate at the time of posting, but archived posts may not reflect current policies. However, this information may differ from what you find on the website of a financial institution, service provider, or specific product. When considering offers, please review the financial institution’s Terms and Conditions and contact them directly for any updates and detailed information about their financial products and services.
The opinions expressed here are solely those of the author and are not influenced by any bank, credit card issuer, or other company, unless clearly stated as part of a sponsorship. All information, including rates and fees, is accurate as of the publication date and is updated based on information from our partners. Some offers mentioned may not be available through our website. Please directly contact the financial institution you’re interested in for any financial transactions.
Editor Policy: The information in this article represents the educated opinion of our editorial team, based on independent research. The banks, lenders, and credit card companies mentioned in this post are not responsible for any content posted on this site and do not endorse or guarantee any reviews. The information was accurate at the time of posting, but archived posts may not reflect current policies.
Some benefits available to a first-time homebuyer include:
- Property tax and interest deductions
- Potential lower or no down payment loans
- A static monthly mortgage payment
- Federal tax credit eligibility
- Grants or forgivable loans for down payment assistance and closing costs
Who is Considered a First-Time Home Buyer?
According to the U.S. Department of Housing and Urban Development (HUD), first-time home buyer qualifications include a person who meets any of the following conditions:
- A person who has not owned a principal residence for three years
- A single parent who has only owned a home with a former spouse while married
- A displaced homemaker who has only owned a home with a spouse
- A person who has owned a principal residence not permanently affixed to a permanent foundation (mobile homeowners)
- A person who has only owned a property not in compliance with state, local, or model building codes and that the cost of repairs surpasses its value
Individuals who may be classified as first-time home buyers include mobile homeowners, single parents re-entering the workforce, individuals who left their job to care for a family member, and renters.
Are you Ready to Buy a Home? Here’s What to Ask Yourself
Is Your Wallet Ready for a Major Investment?
Buying a home is a major investment, so it’s important to ask yourself if your finances are prepared for not only the purchase but the expenses that come with owning a home.
The first aspect of your financial health to consider is your savings. Ensure that you have three to six months of living expenses saved up in a “worst-case scenario” outcome. Consider a certificate of deposit or a high-yield savings account to keep your money growing and working for you.
Next, review your budget and spending to see how much you will need to allocate for a mortgage payment. This will help give a realistic view of where your money is going and how much you can afford. Finally, review your credit score to ensure it is in good standing.
If not, make a conscious effort to pay bills on time and work to lower your debt before moving forward with purchasing a home.
How Do You Picture Your Dream Home?
Purchasing a home is not like purchasing a new pair of shoes – if it doesn’t work for you, you can’t just return it and get store credit. It’s important to prioritize your needs, wants, and non-negotiables from the neighborhood down to the kitchen appliances.
Ask yourself what type of dream home you picture yourself in. Is a condominium more suitable to your lifestyle or will a single-family home do the trick? List out your homeownership goals and consider how your home will build with your future endeavors.
How Much Mortgage Do You Qualify For?
A mortgage is a type of loan used to purchase real estate, such as a home or plot of land. Before you start scouring Zillow for listings, it’s important to have an idea of how much a lender will give you to purchase your first home.
Lenders will factor in current debt, monthly income, and your length of employment to determine the loan amount. Shop around for a lender to find favorable interest rates and fees to find what works for you.
How Much Can You Actually Afford?
A common mistake among first-time home buyers is borrowing too much money, leaving you with little left over to cover other basic necessities and even wants.
Look at the total cost of the house, considering other fees including property taxes and homeowner’s insurance, along with closing cost fees. House shopping with a smaller budget than what you are approved for will give you more flexibility with finances and keep you active in a competitive housing market.
Who Helps You Through the Homebuying Process?
Finding a real estate agent you trust to help you on the search for your dream home will be one of the most important relationships in your life. They will help you navigate the housing market, finding homes for you that suit your needs and are within budget.
When you’ve settled on a home, they will negotiate the purchase process and assist in making an offer, getting a loan, and completing the necessary paperwork to make your dream home a reality.
Top Seven First-time Home Buyer Tips
1. Pre-Qualification, Pre-Approval, Perfection!
Before you start the hunt for a real estate agent and begin visiting open houses, it’s important to know how much you can afford. The road to a perfect house starts with prequalification and pre-approval.
- Prequalification: An informal estimate of the amount of a home loan you can get, taking note of your income and other information.
- Pre-Approval: An official document from your mortgage lender stating exactly how much loan money you can get based on your financial background.
2. Look Beyond Your Own Backyard
When shopping for a forever home, it’s important to be aware of what’s happening in the surrounding area. Is your neighborhood a new build, where the potential for further construction is higher? How important does the ranking of a specific school district correlate to your current and future wants?
Better schools can often mean higher home prices and more competition – consider all of your options and prioritize what’s important!
3. Start Building Up Your Savings and Your Budget
Building a budget is the ideal steppingstone when building savings for larger purchases, like a new home! The main upfront costs to consider is a down payment, which can be as low as 3% to as high as 20%, depending on the type of loan.
Closing costs are the next major fee needed to finalize a mortgage and get the keys to your new home. Closing costs can range from 2% to 6% of the loan amount in addition to the down payment.
Finally, budget out a little extra for moving costs, as well as any upfront repairs or upgrades needed to make your home ready to go!
4. Research those Pesky Property Taxes
A hidden expense that creeps up on new homeowners is property taxes. Research the property taxes associated with the home you are about to buy, or if the current owner has exemptions that make it lower. Also keep in mind that property taxes may rise over time, so leave some room in the budget to cover the unknown.
5. Don’t Move Forward without an Inspection!
Attending a walk-through and undergoing a thorough inspection are key before moving forward with a home purchase. You need to know exactly what your home will need, or perhaps an adjustment in price is needed if repairs are substantial.
6. Let’s Get Physical–Copies of Your Paperwork, that is
Purchasing a home comes with a mountain of paperwork, including the closing disclosure, deed, and future mortgage statements. We recommend keeping physical copies somewhere safe and letting anyone else listed on the loan know where they can access them in case of an emergency.
7. Research, Research, Research
One of the perks of buying your first home is the assistance programs available to help with the costs – so take advantage of them! Tax credits, low-interest-rate loans, and forgivable loans are available for those meeting certain eligibility requirements. Do your research and don’t let the potential savings go to waste.
It’s Closing Time–or Time to Keep Looking
Whether you are venturing down the path of a first-time home buyer in NC or have gone to the Golden State to find your dream home, making your first big budget purchase can be both terrifying and thrilling!
At Auto Money Title Loans, our goal is to help you feel prepared to invest in your future and financially free to do just that. Good luck on finding your forever home!
Sources: USA.gov, HUD.gov, & New America Funding.
Published April 2024
More Helpful Resources
How to Start Building Credit at 20 Years Old
How to Build a 50/30/20 Budget Spreadsheet
Your Guide on How to Budget for Your First Apartment
How a Life Insurance Policy Can Help Set Your Child Up for Financial Success
Navigating Your Student Loans and Repayment? Here, Have a Free Emergency Pizza
Best Popular Spots for Birthday Freebies: An A-to-Z Guide
A Beginner’s Guide to Investing in the Stock Market
Top 10 Best High-Yield Savings Accounts: Making Your Money Work for You
Reviewed by Executive Team Member at Auto Money
Auto Money offers over 80 locations across the Southeast for individuals seeking extra cash for last-minute expenses like auto repairs, wedding costs, medical bills, and more. As title loan lenders, we practice transparency and compliance with codes and regulatory statutes presented by the SC Department of Consumer Affairs & SC Board of Financial Institutions, Consumer Finance Division.
*For Educational Purposes Only: The information provided by Auto Money is for educational purposes only and is not intended as legal advice. For legal issues, you should consult your own attorney or seek advice from a legal professional. All financial advice should be consulted with a certified tax expert or fiduciary.
The information posted was accurate at the time of posting, but archived posts may not reflect current policies. However, this information may differ from what you find on the website of a financial institution, service provider, or specific product. When considering offers, please review the financial institution’s Terms and Conditions and contact them directly for any updates and detailed information about their financial products and services.
The opinions expressed here are solely those of the author and are not influenced by any bank, credit card issuer, or other company, unless clearly stated as part of a sponsorship. All information, including rates and fees, is accurate as of the publication date and is updated based on information from our partners. Some offers mentioned may not be available through our website. Please directly contact the financial institution you’re interested in for any financial transactions.
Editor Policy: The information in this article represents the educated opinion of our editorial team, based on independent research. The banks, lenders, and credit card companies mentioned in this post are not responsible for any content posted on this site and do not endorse or guarantee any reviews. The information was accurate at the time of posting, but archived posts may not reflect current policies.
The thought of getting the keys to your first home can be exciting and even a little scary. What’s even scarier, however, are the moments leading up to the first open house. How much should you set aside for a down payment? What’s considered a good mortgage rate? What even is a mortgage?
Navigating the ins and outs of buying your first home can be challenging and overwhelming. And for that reason, we’ve created a comprehensive guide for first-time home buyers* to do just that – buy your first home with confidence and peace of mind.
The guide will walk you through the advantages of being a first-time homebuyer (hello, assistance programs!), along with some tips and strategies for moving through the buying process with ease.
The Perks of Being a First-Time Homebuyer–No, Really!
Being a homeowner can open many doors, and we’re not just talking about the entryway to your new home. There are many first-time home buyer programs available to help ease the financial pressures that come with this investment into your future.
Some benefits available to a first-time homebuyer include:
- Property tax and interest deductions
- Potential lower or no down payment loans
- A static monthly mortgage payment
- Federal tax credit eligibility
- Grants or forgivable loans for down payment assistance and closing costs
Who is Considered a First-Time Home Buyer?
According to the U.S. Department of Housing and Urban Development (HUD), first-time home buyer qualifications include a person who meets any of the following conditions:
- A person who has not owned a principal residence for three years
- A single parent who has only owned a home with a former spouse while married
- A displaced homemaker who has only owned a home with a spouse
- A person who has owned a principal residence not permanently affixed to a permanent foundation (mobile homeowners)
- A person who has only owned a property not in compliance with state, local, or model building codes and that the cost of repairs surpasses its value
Individuals who may be classified as first-time home buyers include mobile homeowners, single parents re-entering the workforce, individuals who left their job to care for a family member, and renters.
Are you Ready to Buy a Home? Here’s What to Ask Yourself
Is Your Wallet Ready for a Major Investment?
Buying a home is a major investment, so it’s important to ask yourself if your finances are prepared for not only the purchase but the expenses that come with owning a home.
The first aspect of your financial health to consider is your savings. Ensure that you have three to six months of living expenses saved up in a “worst-case scenario” outcome. Consider a certificate of deposit or a high-yield savings account to keep your money growing and working for you.
Next, review your budget and spending to see how much you will need to allocate for a mortgage payment. This will help give a realistic view of where your money is going and how much you can afford. Finally, review your credit score to ensure it is in good standing.
If not, make a conscious effort to pay bills on time and work to lower your debt before moving forward with purchasing a home.
How Do You Picture Your Dream Home?
Purchasing a home is not like purchasing a new pair of shoes – if it doesn’t work for you, you can’t just return it and get store credit. It’s important to prioritize your needs, wants, and non-negotiables from the neighborhood down to the kitchen appliances.
Ask yourself what type of dream home you picture yourself in. Is a condominium more suitable to your lifestyle or will a single-family home do the trick? List out your homeownership goals and consider how your home will build with your future endeavors.
How Much Mortgage Do You Qualify For?
A mortgage is a type of loan used to purchase real estate, such as a home or plot of land. Before you start scouring Zillow for listings, it’s important to have an idea of how much a lender will give you to purchase your first home.
Lenders will factor in current debt, monthly income, and your length of employment to determine the loan amount. Shop around for a lender to find favorable interest rates and fees to find what works for you.
How Much Can You Actually Afford?
A common mistake among first-time home buyers is borrowing too much money, leaving you with little left over to cover other basic necessities and even wants.
Look at the total cost of the house, considering other fees including property taxes and homeowner’s insurance, along with closing cost fees. House shopping with a smaller budget than what you are approved for will give you more flexibility with finances and keep you active in a competitive housing market.
Who Helps You Through the Homebuying Process?
Finding a real estate agent you trust to help you on the search for your dream home will be one of the most important relationships in your life. They will help you navigate the housing market, finding homes for you that suit your needs and are within budget.
When you’ve settled on a home, they will negotiate the purchase process and assist in making an offer, getting a loan, and completing the necessary paperwork to make your dream home a reality.
Top Seven First-time Home Buyer Tips
1. Pre-Qualification, Pre-Approval, Perfection!
Before you start the hunt for a real estate agent and begin visiting open houses, it’s important to know how much you can afford. The road to a perfect house starts with prequalification and pre-approval.
- Prequalification: An informal estimate of the amount of a home loan you can get, taking note of your income and other information.
- Pre-Approval: An official document from your mortgage lender stating exactly how much loan money you can get based on your financial background.
2. Look Beyond Your Own Backyard
When shopping for a forever home, it’s important to be aware of what’s happening in the surrounding area. Is your neighborhood a new build, where the potential for further construction is higher? How important does the ranking of a specific school district correlate to your current and future wants?
Better schools can often mean higher home prices and more competition – consider all of your options and prioritize what’s important!
3. Start Building Up Your Savings and Your Budget
Building a budget is the ideal steppingstone when building savings for larger purchases, like a new home! The main upfront costs to consider is a down payment, which can be as low as 3% to as high as 20%, depending on the type of loan.
Closing costs are the next major fee needed to finalize a mortgage and get the keys to your new home. Closing costs can range from 2% to 6% of the loan amount in addition to the down payment.
Finally, budget out a little extra for moving costs, as well as any upfront repairs or upgrades needed to make your home ready to go!
4. Research those Pesky Property Taxes
A hidden expense that creeps up on new homeowners is property taxes. Research the property taxes associated with the home you are about to buy, or if the current owner has exemptions that make it lower. Also keep in mind that property taxes may rise over time, so leave some room in the budget to cover the unknown.
5. Don’t Move Forward without an Inspection!
Attending a walk-through and undergoing a thorough inspection are key before moving forward with a home purchase. You need to know exactly what your home will need, or perhaps an adjustment in price is needed if repairs are substantial.
6. Let’s Get Physical–Copies of Your Paperwork, that is
Purchasing a home comes with a mountain of paperwork, including the closing disclosure, deed, and future mortgage statements. We recommend keeping physical copies somewhere safe and letting anyone else listed on the loan know where they can access them in case of an emergency.
7. Research, Research, Research
One of the perks of buying your first home is the assistance programs available to help with the costs – so take advantage of them! Tax credits, low-interest-rate loans, and forgivable loans are available for those meeting certain eligibility requirements. Do your research and don’t let the potential savings go to waste.
It’s Closing Time–or Time to Keep Looking
Whether you are venturing down the path of a first-time home buyer in NC or have gone to the Golden State to find your dream home, making your first big budget purchase can be both terrifying and thrilling!
At Auto Money Title Loans, our goal is to help you feel prepared to invest in your future and financially free to do just that. Good luck on finding your forever home!
Sources: USA.gov, HUD.gov, & New America Funding.
Published April 2024
More Helpful Resources
How to Start Building Credit at 20 Years Old
How to Build a 50/30/20 Budget Spreadsheet
Your Guide on How to Budget for Your First Apartment
How a Life Insurance Policy Can Help Set Your Child Up for Financial Success
Navigating Your Student Loans and Repayment? Here, Have a Free Emergency Pizza
Best Popular Spots for Birthday Freebies: An A-to-Z Guide
A Beginner’s Guide to Investing in the Stock Market
Top 10 Best High-Yield Savings Accounts: Making Your Money Work for You
Reviewed by Executive Team Member at Auto Money
Auto Money offers over 80 locations across the Southeast for individuals seeking extra cash for last-minute expenses like auto repairs, wedding costs, medical bills, and more. As title loan lenders, we practice transparency and compliance with codes and regulatory statutes presented by the SC Department of Consumer Affairs & SC Board of Financial Institutions, Consumer Finance Division.
*For Educational Purposes Only: The information provided by Auto Money is for educational purposes only and is not intended as legal advice. For legal issues, you should consult your own attorney or seek advice from a legal professional. All financial advice should be consulted with a certified tax expert or fiduciary.
The information posted was accurate at the time of posting, but archived posts may not reflect current policies. However, this information may differ from what you find on the website of a financial institution, service provider, or specific product. When considering offers, please review the financial institution’s Terms and Conditions and contact them directly for any updates and detailed information about their financial products and services.
The opinions expressed here are solely those of the author and are not influenced by any bank, credit card issuer, or other company, unless clearly stated as part of a sponsorship. All information, including rates and fees, is accurate as of the publication date and is updated based on information from our partners. Some offers mentioned may not be available through our website. Please directly contact the financial institution you’re interested in for any financial transactions.
Editor Policy: The information in this article represents the educated opinion of our editorial team, based on independent research. The banks, lenders, and credit card companies mentioned in this post are not responsible for any content posted on this site and do not endorse or guarantee any reviews. The information was accurate at the time of posting, but archived posts may not reflect current policies.