1st Eagle Mortgage and Loan Company in Chicago Northfield Illinois


What All First-Time Homebuyers Should Know

First-Time Home Buyers

Mortgage broker shares 6 lessons when buying a home for the first time.

Buying your first home is one of the most exciting, emotional and sometimes stressful events in your life. Not only is it the largest chunk of change you’re ever going to invest in, but it’s also a more permanent place to lay roots down and have somewhere to call yours.

Whatever your reason for being ready to buy a home, we congratulate you. But there are some essential lessons you need to learn before going into the home buying process. At 1st Eagle Mortgage, we’re happy to break these lessons down with you and walk you through the buying process.

Learn the most essential things to do when you’re a first-time homebuyer:

Lesson 1: Break down and understand your finances before you shop for a house

Breakdown your Finances

If you think you’re ready to buy a house without consulting with your finances first, you’re wrong. This is the first step in figuring out your options and what you need to do to proceed. What’s your credit score? How much debt do you have? Do you need to clear up any incorrect data in your payment history? You need to understand what your financial situation is before going into the mortgage lending process.

Lesson 2: Consider all your home loan options

Understanding where you’re at financially comes into play during the loan because usually, the best loan rates are reserved for those with high credit scores and healthy financial histories. However, don’t fret if you do not have a solid financial portfolio or have complicated finances.

This part is where using a mortgage broker can help you. Mortgage brokers like 1st Eagle Mortgage can assess your financial situation and connect you to the best loan options for your needs.

While the best loan rates are usually reserved for those with high credit scores, 1st Eagle Mortgage has a variety of lenders that you wouldn’t have access to on your own that offer as little as 3% down, even if you have declared bankruptcy or had a short sale. Our goal at 1st Eagle Mortgage is to connect you to a lender that best aligns with your long-term financial goals.

Lesson 3: Work with people who you trust

Working with People

This is a vital lesson. Everyone on your home buying team – from your realtor, to your mortgage broker, to your inspector – should be someone you have researched and who you feel you can trust. You want to be on the same page with everyone, too, so make sure you’re staying in close communication with each professional as the process goes on.

Lesson 4: Go into the home search with a plan

Home Search Plan

While shopping for houses is a blast, you can’t just pick one solely because it’s pretty. You need to go in with an idea of what you want and need in a home. Are you having kids soon and need a nursery? What kind of area do you want to be in? How many rooms? Do you work from home and need an office? How important is the kitchen size to you? Making a bullet list of things you for sure need in a home will help your realtor pinpoint your perfect dream home.

With that said, it’s important to be realistic and know how to separate the things you need versus the “nice-to-haves.” Narrowing your search too much can be limiting.

Lesson 5: Consider all the costs of homeownership

Do you know what all goes into purchasing a home? Yes, there’s the down payment and monthly mortgage payments, but there’s also inspection, closing costs, legal fees and potentially home repairs – time to get out a spreadsheet and list everything you will need to purchase. You need to be realistic about each cost and do extensive research, and then give yourself a healthy cushion for any surprises that happen along the way.

Lesson 6: Be patient and logical

Be Patient and Logical

Like we stated before, buying your first house can be an emotional experience. Be patient and do not rush through the process. Give yourself enough time at each step and stick with a timeline. While easier said than done, it’s also important not to get too attached to one house. You need to look at houses from a logical perspective and know when to walk away if the deal is a bad one.

For information on 1st Eagle Mortgage and more tips for first-time homebuyers, visit our website.

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