{"id":4351,"date":"2019-03-15T10:00:22","date_gmt":"2019-03-15T14:00:22","guid":{"rendered":"https:\/\/www.sahomebuilder.com\/\/blog\/?p=4351"},"modified":"2023-04-11T01:15:20","modified_gmt":"2023-04-11T05:15:20","slug":"first-time-homebuyer-tips-from-sa-homes","status":"publish","type":"post","link":"https:\/\/www.sahomebuilder.com\/blog\/first-time-homebuyer-tips-from-sa-homes\/","title":{"rendered":"First-Time Homebuyer Tips from S&A Homes"},"content":{"rendered":"

\"First-Time<\/a>There aren\u2019t many decisions that are more important than the investment you make in your new home. S&A Homes recognizes this, and it is one of the reasons we are always ahead of the curve, building forward.<\/p>\n

We understand the process of buying a new home, especially a first home, can be overwhelming \u2013 check out our top first-time homebuyer tips to help ease the process! Be prepared \u2013 there are several things to save up for!<\/p>\n

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  1. Reel-In Debt\/Unnecessary Spending<\/li>\n<\/ol>\n

    Owning a new home is a great investment!  Over time though, routine maintenance and repairs are unavoidable and need to be addressed in a timely manner to avoid becoming costlier than originally expected. Excessive debt can hinder a homeowner\u2019s ability to make repairs and maintain upkeep, so having a good handle on it before diving into homeownership is a good idea.<\/p>\n

    Begin by looking at your credit cards, medical bills, outstanding bills, etc. \u2013 order them from highest to lowest in terms of total balance, interest rate and monthly payment, then pay off the smallest debts first. Once a month, pay off one or two balances.<\/p>\n

    Once you\u2019ve done that, take a look at your weekly spending. Do you really need a $5 latte every morning? Consider using that $5 to purchase ground coffee to make at home \u2013 that\u2019s an average savings of $20 a week or $1,040 a year!<\/p>\n

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    1. How much house can you afford?<\/li>\n<\/ol>\n

      Before beginning the house hunting process, it is important to know how much house you can afford. According to DaveRamsey.com<\/strong><\/a>, make sure your monthly housing costs (including HOA fees, insurance, taxes, etc.) are no more than 25 percent of your monthly take-home pay.<\/p>\n

      For example, let\u2019s say you bring home $5,000 a month. Multiply that by 25 percent to establish your maximum monthly house payment of $1,250.<\/p>\n

      Keep in mind that property taxes and homeowner\u2019s insurance will affect the monthly payment and will need to be factored in before settling on a maximum home price.<\/p>\n

      Since property tax rates and the cost of homeowner\u2019s insurance vary, check with your mortgage consultant and insurance company for estimates to calculate how much house you can afford. Click here<\/a> to use a mortgage calculator for a more personalized guesstimate. <\/p>\n

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      1. Save Up for a Down Payment<\/li>\n<\/ol>\n

        Once you have determined how much house you can afford, start saving for a down payment of at least 20 percent. Meeting the 20 percent threshold means not having to pay for Private Mortgage Insurance (PMI), which protects the mortgage company in case you cannot make your payments and end up in foreclosure. PMI usually costs 1 percent of the total loan value and is added to your monthly payment.<\/p>\n

        If 20 percent seems out of reach, there are other home loan options available to first-time homebuyers including 100 percent financing options:<\/p>\n

        Fixed-Rate Loans<\/p>\n