Move-In Ready: 6 Tips for Buying a Home
Your guide to a smoother homebuying process.
Whether you’re a first-time homebuyer or simply ready for a new place, it’s a good idea to get familiar with the mortgage process. Moving—especially into a home of your own—is an exciting milestone, and these tips will help you steer clear of common obstacles along the way.
1. Don’t sweat the down payment
You’ve probably heard you need 20-25% of the home’s cost as a down payment. In today’s housing market, that’s no small chunk of change—but don’t fret if that seems out of reach. With Sunward, you can put as little as 3-5% down on your new home. Why? Most lenders require a larger down payment to avoid paying Private Mortgage Insurance (PMI), but that’s a cost you won’t have to worry about with Sunward. Talk to your Sunward mortgage loan officer to explore your options.
2. Make sure you have more savings set aside
When you’re crunching the numbers and saving every penny to purchase a home, remember you’ll still need savings after you’ve moved in. Not only are there unexpected costs to homeownership, like potential repairs, but life doesn’t stop after you’ve bought a house. It’s important to have some money tucked away somewhere safe—like a Sunward Savings account—just in case.
3. Don’t make major purchases or obtain additional credit during the loan process
Just because you’re under contract doesn’t mean you’re out of the woods yet. Making a large purchase or obtaining new credit during the loan process impacts your financial picture and can cause issues with securing a loan. Before making any big changes, it’s always best to talk to your Sunward loan officer to avoid any unwelcome surprises.
4. Remember what your pre-approval factors in—and what it doesn’t
Your pre-approval letter isn’t a recommendation on how much house you should buy—but it is telling a seller that a lender is willing to extend financing to you, capped at that amount. The figure on your pre-approval is often at the higher end of affordability and doesn’t factor in things like homeowner’s insurance and property taxes. Remember to research tax and insurance rates, factor those costs into your ideal monthly payment, and calculate a comfortable home price range from there.
5. Ask questions
There are a ton of questions that come up during the homebuying process, and you should ask them. It’s smart to take it a step further by researching all the questions new homebuyers should ask to cover any blind spots. It’s true what they say: You don’t know what you don’t know.
6. Have a lender you trust
There’s no overstating the importance of having trusted partners by your side as you get a mortgage and buy a home. With over 55 years of mortgage lending experience, your Sunward team is ready to work alongside you every step of the way during this exciting journey.
Considering a mortgage? Talk to one of our loan officers to see what options are right for you.
