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How to Choose the Right Home for You

How to Choose the Right Home for You

by | Apr 16, 2025 | Mortgage, Family Finances, Loans

How to Choose the Right Home for You

Loans | Mortgages | Family Finances 

houses

Before you start shopping, it’s important to know what it is you are looking for. Whether you're a first-time homebuyer or a seasoned investor, the process can feel overwhelming. But with a little planning, self-reflection, and research, you can find a place that meets both your needs and your lifestyle. We have compiled a few items we think are important to consider when choosing the right home.

1. Determine Your Budget

Before you even start browsing listings, it’s essential to know how much you can afford. Your budget will not only determine which homes are in your price range but will also impact your decision-making throughout the process.

Start by evaluating your financial situation:

  • Income and Savings: Assess how much money you have saved for a down payment and how much you earn each month.
  • Pre-Approval for a Mortgage: Get pre-approved for a loan so you have a clear idea of how much a lender is willing to give you. This will give you a price range and prevent you from falling in love with homes that are out of reach.
  • Monthly Expenses: Don’t forget to consider all the costs associated with owning a home—mortgage payments, property taxes, homeowners insurance, utilities, maintenance, and possible HOA fees.

2. Decide on Your Ideal Location

Location is key to finding the right home. Even the most beautiful house can lose its appeal if it’s in a neighborhood that doesn’t suit your lifestyle. Here are some factors to consider when choosing the location:

  • Proximity to Work or School: Think about your daily commute. Do you prefer a short drive or public transportation options?
  • Amenities and Services: Consider the convenience of nearby shops, restaurants, healthcare facilities, schools, and parks. Having essential services within walking distance can add value to your life.
  • Safety: Research the safety of the area, including crime rates and the general reputation of the neighborhood.
  • Future Development: Investigate whether the area is growing or has plans for development, as this could impact your home’s value in the future.
couple_blueprints_newhome

3. Consider the Size and Layout

Now that you’ve set your budget and selected a location, it’s time to focus on the size and layout of your home. Consider your current and future needs:

  • How Much Space Do You Need?: How many bedrooms and bathrooms do you require? Do you need space for a home office, gym, or guest room? Think about both your present needs and potential life changes (e.g., starting a family or accommodating elderly relatives).
  • Open vs. Traditional Layouts: Do you prefer a more open concept where the living, dining, and kitchen areas flow together, or do you like a more segmented layout with defined rooms?
  • Outdoor Space: If you enjoy gardening or entertaining, you might want a larger yard. However, if you’re busy and prefer low-maintenance living, a smaller or no-yard home may suit you better.

4. Think About Future Needs

While buying a home is a big commitment, it’s also important to think long-term. Your needs might change in the next 5 to 10 years, so consider the potential for growth and adaptability:

  • Resale Value: Even if you plan on staying for a while, it’s good to think about the resale potential. Is the neighborhood on the rise? Does the home have features that would appeal to future buyers?
  • Flexibility for Changes: Will you need space for a growing family or a home office in the future? Consider how easy it will be to make changes or renovations if necessary.

5. Factor in Home Condition and Age

When you find a home that ticks all the boxes, don’t forget to consider its condition. The age of the property plays a significant role in maintenance and repair costs:

  • New vs. Older Homes: A new home may require less immediate work, but it might also come with a higher price tag. An older home might have more character but could need more repairs, such as upgrading the plumbing or electrical system.
  • Inspection: Always schedule a professional home inspection before making a final decision. Inspectors can identify any hidden issues with the property, giving you peace of mind before making such a significant investment.

6. Visualize Your Lifestyle

Your home should align with your lifestyle and values. Whether you're an active individual, love entertaining, or want a quiet retreat, make sure your home supports your day-to-day activities:

  • Space for Hobbies: If you enjoy activities like gardening, baking, or crafting, make sure the home accommodates those hobbies.
  • Social Space: If you love hosting friends and family, consider whether the home has enough space for social gatherings or has a nice flow for entertaining.
  • Maintenance: Some people prefer a home that’s low-maintenance, while others enjoy working on projects around the house. Know what suits your lifestyle best.

7. Consult a Real Estate Agent

While the idea of navigating the housing market on your own may be tempting, it’s often worth seeking help from a real estate agent. A qualified agent can offer valuable insights, negotiate on your behalf, and help you avoid common pitfalls. They can also help you understand the local market and provide you with listings that fit your criteria.

8. Trust Your Instincts

Finally, while data and research are essential in choosing the right home, don’t forget to trust your gut. Walk through the home and envision your life there. Does it feel like a place where you could see yourself living long-term? Does it match the vision you have for your life?

If something feels off, it might be worth reconsidering. Remember that finding the right home is a journey, and it’s okay to take your time.

Conclusion

Choosing the right home is a complex decision, but with careful planning, self-reflection, and the right guidance, you’ll be able to make an informed choice that suits your lifestyle and budget. From setting your budget to considering your future needs and lifestyle preferences, every step of the process plays a crucial role. Keep your priorities in mind, stay organized, and remember that your home is not just a place to live; it’s a space to thrive. Happy house hunting!

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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Buy Now, Pay Later vs Credit Cards: Which is Right for You?

Buy Now, Pay Later vs Credit Cards: Which is Right for You?

by | Dec 13, 2024 | Holiday, Credit Cards, Loans

Buy Now, Pay Later vs Credit Cards: Which is Right for You?

Fraud | idLock

buy-now-pay-later-vs-credit-card

There are more ways to pay for purchases than ever before. However, whether you’re shopping in-store or online, credit cards are still one of the most used payment methods regardless of the growing attraction of buy now, pay later (BNPL) plans. BNPL lets you split purchases into no interest payment plans but do not offer as many benefits as credit cards.

If you’re not sure whether you should use a credit card or BNPL, or a mix of the two, we’ve listed a few pros and cons of the two options.

 

Credit Cards

Buy Now, Pay Later

Pros:

  • Minimum monthly payments can be paid off over a long period of time, though it is not recommended carrying a balance.
  • Can be used for almost any type of purchase – stores, gas stations, grocery stores, and more.
  • Potential to earn rewards or points.
  • Potential to benefit from sign-up bonuses.
  • Opportunity to improve credit score, with responsible payments.

Cons:

  • Longer application process.
  • Applying for credit cards result in hard credit checks that can negatively impact credit scores.
  • If you do not pay off the card at the end of the monthly billing cycle, you may owe interest.
  • You may have annual fees, foreign transaction fees, and/or late payment fees.

Pros:

  • Fixed installment plans, typically with no interest.
  • Choose the payment frequency that works for you.
  • Instant approval and apply right at check out.
  • Hard credit checks are not always required.

Cons:

  • You cannot earn rewards or points.
  • Not accepted by every retailer.
  • May be charged late fees or interest for late payments.
  • Less likely to increase credit score.

Which is Better?

Deciding which option is best for you depends on your financial situation and long-term goals. BNPLs are usually accepted by online or in-store retailers whereas credit cards can be used almost anywhere, for any type of purchase.

If increasing a credit score or building credit history is your goal, credit cards are a better option for you. But if you have a low credit score or a short credit history, BNPL is a better option for you as it often uses less stringent criteria to approve you. However, it is not an all-or-nothing option, some people switch between one or the other depending on the purchase.

Choose BNPL if:

  • You want to make a large purchase and pay it off quickly.
  • You prefer fixed payments to manage budgeting.
  • You plan to make purchases from specific retailers that offer BNPL.

Choose Credit Cards if:

  • You want flexibility to shop anywhere.
  • You’re looking to build credit and take advantage of rewards.
  • You can manage repayments responsibly to avoid interest charges.

Bottom Line

Both BNPL and credit cards can be useful financial tools, but understanding their differences is crucial for making informed choices. Assess your spending habits, repayment capabilities, and financial goals to decide which option aligns best with your lifestyle. Whatever you choose, make sure to read the fine print and understand the terms before committing!

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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10 Tips for Budgeting Your Holiday Season

10 Tips for Budgeting Your Holiday Season

by | Nov 1, 2024 | Loans, Credit Cards, Family Finances, Holiday

10 Tips for Budgeting Your Holiday Season

Family Finances | Credit Cards

Group of friends taking a selfie

While the holiday season is a time of joy and celebration, it often has a significant impact on our finances. As holiday expenses – food, gifts, travel, and more – continue to rise each year, effective budgeting is essential to maintaining financial health into the new year. We have compiled a list of budgeting tips to help you survive he holiday season.

1. Get a Head Start

Did you know that 48 percent of Americans kick off their Christmas shopping before Halloween? While some people think the holiday shopping season is starting earlier every year, there is a reason why. If you wait until the last minute to begin holiday shopping, you risk losing out on the best deals, ample shipping time, and experience a higher financial impact to your wallet. Other benefits include:

  • Wider selection
  • Exclusive deals
  • Reduced holiday stress
  • Better planning
  • Improved shipping times
  • Opportunity for price adjustments

The earlier you shop, the better chance you have at stacking discounts and staying within your holiday budget.

2. Set Spending Limits

A good way to approach the holiday season is to set spending caps on your holiday shopping. First, look at your regular monthly budget, what are your everyday expenses for food, bills, and other necessities? Once you have a clear idea of how much you need to set aside, start adding in how much you expect to spend on presents and other holiday items. If you’re not sure, use last year’s holiday spending as a realistic reference.

Once you have your spending limits, it will help you set expectations early for how much you can afford. For example, you might decide to give four gifts to each of your kids, all totaling a certain amount. If your kids know this ahead of time, it might prevent disappointment Christmas morning. Additionally, if your budget doesn’t allow you to buy gifts for all of your family and friends, you can communicate early on, agreeing on price limits or not exchanging gifts at all.

3. Prioritize Bill and Other Essentials

It is important to prioritize your monthly essentials over your holiday nice-to-haves. There are plenty of memories you can make during the holidays that don’t revolve around money or gifts. Try to curb impulse buying and set aside money for your most important items – rent/mortgage, utilities, insurance, loans, and so on. Try sitting down with your family or friends and come up with ways you can spend time together this holiday season. These experiences may be more fun, less stressful, and easier on your budget!

4. Take Advantage of Holiday Sales

As the holiday season approaches, pre-holiday sales – such as Amazon Prime Day, Walmart Deals, Target Circle Week, Labor Day sales and more – offer consumers significant savings. These events allow consumers to shop early, stretch their budgets, and reduce holiday stress.

5. Track Your Spending as You Go

You do not want to make a holiday budget and then fail to track your spending. You can do it the old-fashioned way by saving receipts or handwriting them on a piece of paper. Or, you can automate it with an app on your smartphone.

6. Shop Online and Compare Prices

Online shopping allows you to compare prices, access a wider selection of products, read reviews and research without ever leaving the comfort of your home. Plus, many retailers offer free shipping and returns during the holiday season.

christmas credit card

7. Leverage Cash-back and Reward Programs

During the holiday season, your spending increases on travel, dining, and festivities. Did you know you can maximize your credit card rewards during the holiday season while your spending big? Most credit cards, like the JVB Simply Rewards Visa  Signature Credit offer one point per dollar spent, but multiple points on special categories like groceries, gas stations, discount stores, fast food, or restaurants, depending.

  • Cash Back: If you have a cash back card, this is a great time to build up points. You can get cash back to pay for those Thanksgiving grocery bills or prepare early for Christmas presents.
  • Travel: If you have a travel rewards card, you can book holiday flights with points or build up points by booking flights.
  • Merchandise and Gift Cards: Another way to use your rewards is to get merchandise or gift cards. You can then use these gift cards to buy gifts, or use as gifts!

Whether you’re booking flights, meeting family for a festive dinner, or buying gifts, you can leverage your credit card rewards for significant savings.

8. Manage Credit Card Use

Consider using a single credit card for all holiday purchases, making it easy to track spending and prevent overspending. It’s often tempting to defer payments during the holiday season by using credit cards or buy-now-pay-later options, however, use this with caution. Taking advantage of a 0% APR offer may allow you to avoid paying interest on the balance for 6 or 12 months. However, its crucial you pay the card off before the promotional period ends. To avoid accumulating debt, make sure all payments fit within your overall budget and you have a set timeline for repayment.

9. Reuse Last Year’s Decorations

New can be exciting, but when it comes to last year's Christmas decorations, you can reuse them! Christmas decorations can be expensive, and many of the latest trends are minor changes from the items you have in storage. Save money this year and deck the halls in last year’s ornaments and décor.

10. Open a Holiday Savings Account

Some banks and credit unions offer special, low-fee savings accounts for year-round savers to set aside holiday money, known as Holiday Savings Accounts. Some accounts come with benefits, such as automatic savings deposits and the option to receive the disbursement by a direct deposit or check on a certain day close to the holiday season for as little as $1 to open. There are many benefits to opening a holiday savings account, these include:

  • Build your holiday savings account throughout the year
  • Monitor your progress with online and mobile banking
  • You get a deposit in mid-October to get an early start to your holiday shopping
  • Earn interest on your holiday savings

It’s never to early to start saving for next year’s holiday season. Open a Holiday Savings account today!

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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Pros and Cons of Buy Now, Pay Later

Pros and Cons of Buy Now, Pay Later

by | Oct 21, 2024 | Loans, Family Finances, Holiday

Pros and Cons of Buy Now, Pay Later

Family finances

Group of friends taking a selfie

Buy Now, Pay Later (BNPL) options are an alternative to traditional credit that retailers are using to entice new customers and foster loyalty among existing ones. Companies like AfterPay, Klarna, and Affirm are reimagining online shopping. BNPL offers simple, interest-free installment plans that consumers pay back over a short period.

It’s no secret BNPL has become a popular checkout option since 2019. People like the chance to pay later and get free financing. While the allure of delayed payments and immediate cash is undeniable, buyers must exercise caution.

Consider these pros and cons before using buy now, pay later services.

Pro's

Con's

Split up Payments

One of the top benefits of BNPL services is that you can break up payments into smaller, less expensive amounts. It makes it possible to make a big purchase without having to have all the funds up front.

0% Financing

When you make your payments on time, many BNPL users get 0% financing.

No Credit Check

Not all, but some BNPL services do not check your credit before approving you. This gives younger consumers who are new to credit, a chance to have a financing option.

sFees and Interest

If you miss a payment, you may be charged late fees or interest. These can add up quickly, depending on the amount owed and how many you’ve missed. Just like traditional credit, if you stop paying, you may end up at a collection agency putting your credit score in danger.

Possible Overdrafts

BNPL services set up automatically scheduled payments, leaving room for potential checking account overdrafts if you aren’t monitoring your account. It’s important to make note of your BNPL payment schedule to ensure you have enough funds in your account to avoid late payments and potential NSF fees.

Easy to Overextend Finances

One pitfall of using BNPL services is that it can be easy to spend more than you have. Only paying attention to the cost of each payment, especially when you make several BNPL purchases, can easily rack up each month making it challenging to manage.

Returns Can Be Difficult

If you need to make a return after using BNPL services, you may be in for a headache. Unlike making a purchase with a credit card, funds get returned to the BNPL lender, which then get returned to you. While you wait for the return of funds, you are still required to continue making BNPL payments or face late fees and penalties. This may take weeks or months.

Miss Out on Rewards

When using credit cards, you may easily earn points or rewards. However, wen you use BNPL services you’ll forgo your rewards and potential other benefits.

Should You Use BNPL?

Whether or not you use buy now, pay later services depends on you. To responsibly use BNPL services, you should be prepared to pay on time, ensure you monitor your due dates, and not overextend your finances. If this is something you don’t think you are able to do, consider using other financing options such as credit cards, personal loans, and more.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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Understanding Loan Types: A Deep Dive into Conventional Loans

Understanding Loan Types: A Deep Dive into Conventional Loans

by | Oct 1, 2024 | Loans, Mortgage

Understanding Loan Types: A Deep Dive into Conventional Loans

Loans | Mortgage

welcome mat for first time home buyers

When it comes to financing a home, understanding the different types of loans available can be daunting. One of the most popular options for homebuyers is the conventional loan. Within this category, there are two options: fixed-rate loans and adjustable-rate loans. In this blog, we will be breaking down these types to help you decide what might be your best option if going the conventional loan route.

What is a Conventional Loan?

A conventional loan is a type of mortgage that is not backed by the government. These loans are typically issued by private lenders and are subject to stricter credit and income requirements. Because they’re not insured by the government, lenders usually require higher credit scores and larger down payments compared to government-backed loans like FHA or VA loans.

Advantages of Conventional Loans

  1. Flexible Terms: Conventional loans offer a variety of terms, usually ranging from 10 to 30 years.
  2. No PMI with 20% Down: If you can put down at least 20%, you won’t have to pay private mortgage insurance (PMI), which can save you money.
  3. Competitive Rates: With a strong credit score, borrowers may find better interest rates.

What’s the difference between a fixed-rate and adjustable-rate mortgage loan?

Fixed-Rate Loans

What Are They?

Fixed-rate loans have the same interest rate throughout the life of the loan. This means your monthly mortgage payment (principal and interest) will remain the same, providing stability and predictability.

Pros of Fixed-Rate Loans

  1. Predictability: Your monthly payments won’t change, making budgeting easier.
  2. Long-term Stability: If you secure a low interest rate, you can benefit from it for the duration of the loan, which can be particularly advantageous in a rising interest rate environment.
  3. 3. Easier to Understand: Fixed-rate mortgages are straightforward, making them an ideal choice for first-time homebuyers.

Cons of Fixed-Rate Loans

  1. Higher Initial Rates: Fixed-rate loans often start with higher interest rates than adjustable-rate loans, which can increase your monthly payments.
  2. Less Flexibility: If interest rates decrease, you’ll be stuck with your higher rate unless you refinance.

Adjustable-Rate Loans (ARMs)

What Are They?

Adjustable-rate mortgages (ARMs) have interest rates that can change over time based on market conditions. They typically start with a lower initial rate for a specific period, after which the rate adjusts periodically.

Pros of Adjustable-Rate Loans

  1. Lower Initial Rates: ARMs usually offer lower initial interest rates compared to fixed-rate loans, which can mean lower initial payments.
  2. Potential for Lower Payments: If interest rates remain stable or decrease, your monthly payments may be lower than those on a fixed-rate mortgage.

Cons of Adjustable-Rate Loans

  1. Payment Uncertainty: Your payments can increase significantly after the initial fixed period ends, making it harder to budget.
  2. Rate Caps: While ARMs often have caps that limit how much your interest rate can increase at each adjustment and over the life of the loan, sudden spikes can still happen.
  3. Complexity: ARMs can be more complicated to understand, with various terms and conditions that borrowers must be aware of.

Choosing the Right Loan for You

Deciding between a fixed-rate and an adjustable-rate loan depends on your financial situation, how long you plan to stay in your home, and your risk tolerance.

  • Fixed-Rate Loan: Ideal for buyers who value stability and plan to stay in their homes long-term. It’s a great choice if you expect interest rates to rise.
  • Adjustable-Rate Loan: Suited for those who are comfortable with some level of risk and plan to move or refinance within a few years. If rates remain low, this can lead to significant savings.

Understanding the differences between fixed-rate and adjustable-rate conventional loans is crucial for making informed financial decisions. Take the time to evaluate your personal circumstances, future plans, and market conditions to choose the best option for your home financing needs. Whether you opt for the stability of a fixed rate or the potential savings of an adjustable rate, being informed will help you make the best choice for your situation.

 Contact our mortgage experts for help making the right loan choice for you.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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First-Time Home Buyer Tips

First-Time Home Buyer Tips

by | Oct 1, 2024 | Loans, Family Finances, Mortgage

The Ultimate Guide for First-Time Homebuyers

Loans | Mortgage

welcome mat for first time home buyers

-Congratulations! If you're reading this, you're probably standing on the brink of one of life's most exciting milestones: buying your first home. Whether you’re dreaming of a ranch-style country home or a sleek modern two-story house, the journey to homeownership can be thrilling but also a bit overwhelming. Don’t worry—we’re here to help you navigate the process with ease. Here’s your comprehensive guide to making the home-buying experience as smooth and successful as possible.

1. Understand Your Budget

Before you start browsing listings, it’s crucial to get a clear picture of your budget. Consider the following:

  • Down Payment: Typically, you'll need 5-20% of the home’s price as a down payment. The more you can put down, the better your mortgage terms may be.
  • Closing Costs: These can include appraisal fees, title insurance, and legal fees, often totaling 2-5% of the home price.
  • Monthly Payments: Don’t forget to factor in mortgage payments, property taxes, home owners’ insurance, and maintenance costs.

Tip: Use online mortgage calculators to get an estimate of what you can afford. This will give you a rough idea of your price range and help you avoid falling in love with a home that’s out of your reach.

2. Don’t Skip the Preapproval

We understand it’s exciting to start scouring the internet for the perfect house. However, it’s important to get pre-approved for a mortgage to help set a realistic budget and understand what you can afford.

It’s also important to understand the difference between prequalification and preapproval.

  • Prequalification: A prequalification is an estimate of how much home you can afford. It is informal and based on information you provide.
  • Preapproval: A mortgage preapproval is an official letter from a lender of your choice that tells you how much money you can borrow based on your financial status, such as W-2s, bank statements, and credit score.

What are the benefits of preapproval?

  • Clarifies your budget: You’ll understand how much you can borrow, allowing you to shop within your budget.
  • Stronger offers: Sellers will view you as a serious contender, increasing your chances of securing the home you want and making your offers more competitive.
  • Streamline the closing process: You’re less likely of running into last minute delays with your mortgage lender.

What are the benefits of prequalification?

  • Know where you stand without risking your credit: You’ll receive a ballpark estimate of how much money you may be able to borrow, often times with a soft inquiry that will not affect your credit rating. (Note: Some prequalification’s may require a hard inquiry).
  • Quick turnaround: Getting prequalified is fast and easy. It will provide you with helpful information that can guide you to making better buying decisions.

3. Understand Your Loan Options

Did you know the type of loan you choose for financing your mortgage will influence your down payment amount, the type of home you can buy and more? It’s important to understand your options before selecting a loan.

  • Conventional Loan: A conventional loan is the most common type of home loan. These loans are typically issued by private lenders and are subject to stricter credit and income requirements but offer several different term options with most people choosing between 15 and 30-year terms.
  • Federal Housing Administration (FHA) Loans: An FHA loan allows you to buy a home with less strict financial and credit score requirements making them appealing to first-time homebuyers.
  • Department of Veterans Affairs (VA) Loan: VA loans are exclusive to veterans, active-duty members of the armed forces and National Guard, and qualified spouses. If you qualify, you can purchase a home with 0% down.
  • Shared Equity Loan: Also known as family-backed mortgages, a shared equity loan allows parents or other relatives to help homebuyers obtain financing with a small down payment.

4. Maintain Your Credit

During the preapproval process, lenders will pull your credit history and continue to monitor your report during your buying journey. This is not the time to open any new lines of credit. If it is discovered you have taken out another loan or line of credit, your credit balance has increased, or you’ve started making late payments on your credit cards or loans, it may risk your final mortgage approval or decrease the value of how much home you can afford.

It is important to keep paying your bills on time and avoid opening any new lines of credit. Additionally, you don’t want to attempt to influence your credit ratings, for better or worse, because lenders are looking for consistent and reliable behavior patterns for future payments.

5. Save for a Down Payment

If you qualify as a first-time homebuyer, you can benefit from assistance programs that range from 0% to 3.5% down. However, if you have a down payment for at least 20% of the purchase price, you’ll be able to avoid private mortgage insurance (PMI) on a conventional loan.

What qualifies you as a first-time homebuyer?

According to the U.S. Department of Housing and Urban Development, a first-time homebuyer is an individual who meets any of the following criteria:

  • An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).
  • A single parent who has only owned with a former spouse while married.
  • An individual who is a displaced homemaker and has only owned with a spouse.
  • An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
  • An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

If you meet any of these requirements, you may qualify for an FHA loan or other programs that provide down payment assistance loans and grants.

6. Save for Closing Costs

We’ve spent a lot of time discussing saving for your first home. Everyone always thinks about the down payment, but may overlook the closing costs. Closing costs are upfront expenses, ranging from 2 to 5 percent of the total loan amount, that go to your lender on closing day. These might include:

  • Application fee
  • Origination fee
  • Appraisal fee
  • Attorney fee
  • Discount points
  • Homeowners insurance
  • Title insurance expenses
  • Property Taxes

In your Closing Disclosure, you will see your exact closing costs. But don’t fret, as a first-time homebuyer, you may qualify for government-backed grants or loans that assist with closing costs.

7. Writing Down What Makes Your Dream Home a Dream Home

Once you are ready to start house hunting, it’s important to know what kind of home you are looking for. This will not only help you when searching online, but help your real estate agent suggest homes. Start a list of your needs, non-negotiable and nice-to-haves.

Do you need 3 bedrooms but would like to have a swimming pool? Write it down.

This will help you shop for homes and be less stressed when comparing properties.

8. Find a Qualified Real Estate Agent

You found a home online you like, now what? Working with a qualified real estate agent makes the buying process less stressful. They can help by:

  • Finding and showing you homes that fit your needs and price range
  • Helping you decide how much to offer
  • Submitting an offer letter on your behalf
  • Helping you negotiate with the seller’s agent
  • Attending the closing with you

9. Submit Your Offer with Confidence

Don’t risk losing your earnest money deposit, also referred to as good faith deposit. When you are ready to make an offer on a home, make sure you are 100% committed to the purchase of that home. Giving a good faith offer tells a seller you are serious about buying their home. Often, it is equal to 1-3% of your total home price, and goes towards your down payment. If you back out of your offer for a reason not listed in the offer letter, you’ll lose your deposit.

10. Hire an Inspector

Purchasing your home is likely one of the largest purchases you make in your life – one in which you want as much information as possible. For example, learning that your home will need a new roof in the next year may change your mind about wanting to buy it, or the amount you’re willing to offer. This is why you should not waive a home inspection. Home inspections can uncover potentially hazardous items in a home, such as bad wiring or structural issues, that you may not have noticed when you went to tour the home and save you money in the long run.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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