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First Time Homebuyer? Here's what you need to know!

Updated: Mar 21

If you're a first time homebuyer, you've come to the right place.

Couple celebrating moving into their new home, surrounded by boxes.

Being a first time homebuyer can be incredibly scary. If you've never been on the hunt for a home, it can feel overwhelming. We want to make this process easy for you to understand so that when you go to purchase a home and get a loan, you have the confidence you need to make it happen! Our loan officers are the best in the business and will put you first!

Here are a list of things you need to know before you buy a home:

Who qualifies as a first-time homebuyer?

You must be a first-time homebuyer who has not had ownership interest in a property within the past three years*. You must be a primary residence in the state with which you are buying*. You must meet area-specific income and purchase limits.*

*These qualifications are subject to change -- each state will have their own specific guidelines. To learn about your specific qualifications for your area, find a loan officer with Essex Mortgage who can help you out.

What should a first-time homebuyer budget monthly for a loan?

When budgeting for a monthly mortgage loan, you should take a few things into consideration.

  1. Do you want to purchase a home with the highest monthly payment you can afford? Or do you want to have some leeway in your budget?

  2. Do you have other monthly expenses to consider?

  3. How many years do you want this loan (15 or 30 years are standard)?

  4. How much money do you have to put down on the home (this could help the monthly cost be less - ask your loan officer for more details)?

  5. Is there an HOA you need to consider or other monthly costs that could come along with the home?

  6. If this loan is at the top of your budget, do you have a game plan for sudden drops in income?

There are other things that you should take into consideration for your monthly budget as well, but only you know those things. Every person's budget is different. You know what will work for you, but we definitely suggest looking at your budget and not just flying blindly into getting a loan. Check out our loan calculator here on our First Time Homebuyer Page.

What should be the first step in getting a loan?

Your very first step should be finding a loan officer, but once you have done that, it would be a good idea to start getting your financial documents sorted.

This may seem like a big undertaking if organization isn't your strong suit, but this is a very important step in the process. Documents such as paystubs, W2s, profit and loss statements, tax return, etc. need to be gathered. Take our checklist and gather one document at a time. You've got this!

A few things to keep in mind during this process: Make sure you aren't getting any new credit cards or taking out any other loans near the time you are trying to get a mortgage loan. This could delay or completely stall the process.

Got questions? Talk to a loan officer today!

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