First-Time Home Buyer Tips

Your Guide to Buying Your First Home

Tracy's Blog
January 28, 2025•3 min read

Buying your first home is an exciting journey, but it can feel overwhelming if you don’t know where to start. With a little preparation and guidance, you can make the process smooth and rewarding. Here’s a step-by-step guide for first-time homebuyers to help you achieve your dream of homeownership.

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1. Understand How Much Home You Can Afford

The first step to buying a home is knowing your budget. It’s important to consider all your current expenses and think about a monthly house payment you’re comfortable with. This includes not just the mortgage but also property taxes, homeowners’ insurance, and possibly private mortgage insurance (PMI).

• Check Your Budget: Take a detailed look at your current bills and expenses. Consider what you can afford to pay each month without straining your finances.

• Save for a Down Payment: Most lenders require a down payment of 3% to 20% of the home’s price. Start saving as early as possible to reach your goal.

Speaking with a mortgage broker can help you explore different loan options tailored to your financial situation.

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2. Improve Your Credit Score

Your credit score plays a big role in determining your mortgage interest rate. A better score can save you thousands over the life of your loan.

• Pay Bills on Time: Timely payments improve your credit.

• Reduce Debt: Focus on paying down credit cards or other outstanding balances.

• Check Your Credit Report: You’re entitled to a free credit report annually at AnnualCreditReport.com.

• Don’t Close Accounts: Avoid closing credit cards or loans while preparing to apply for a mortgage, as this can lower your score.

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3. Get Pre-Approved for a Mortgage

A mortgage pre-approval shows sellers that you’re a serious buyer and gives you a clear idea of your price range. It also helps you act quickly when you find the perfect home.

To get pre-approved, you’ll need:

• Proof of Income: Pay stubs, W-2s, and any documentation for additional income sources.

• Proof of Assets: Bank statements showing your savings.

• Credit History: Your lender will review your credit score and history.

Work with a trusted mortgage specialist to guide you through the pre-approval process and explain your options.

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4. Research Neighborhoods

Where you live matters as much as the house you choose. Spend some time exploring neighborhoods to find one that fits your needs and lifestyle.

• Schools: Are there quality schools nearby?

• Commute: How far is it to work or other important destinations?

• Amenities: Look for nearby grocery stores, parks, and other conveniences.

Take a drive or walk through areas you’re considering to get a feel for the community.

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5. Plan for Closing Costs

In addition to the price of the home, you’ll need to budget for closing costs. These fees usually range from 2% to 5% of the home’s purchase price and include:

• Appraisal Fees: To confirm the home’s value.

• Title Work: Ensures the property title is clear of liens or disputes.

• First Year of Homeowners Insurance: Required to protect your home from unexpected events.

• Taxes: Property taxes may be due at closing.

Talk to your lender for a detailed estimate of the closing costs specific to your area.

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Professional Guidance Every Step of the Way

Buying your first home doesn’t have to be stressful. Partnering with professionals can make all the difference:

• Mortgage Specialist: Tracy Roberts, https://tracyrobertshomeloans.com, Ph: 701-934-0636

• Financial Planner: Helps you create a budget and savings plan.

• Insurance Agent: Finds the best homeowners’ insurance for your needs.

• Accountant: Answers tax-related questions about homeownership.

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Take the First Step Today

Buying your first home is a major milestone. With proper planning, research, and the right team of experts, you can confidently take this big step. Ready to get started? Reach out today to learn more about your options and make your dream home a reality! https://tracyrobertshomeloans.com

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Tracy Roberts is a dedicated mortgage broker with MSFG Home Loans, licensed in North Dakota, South Dakota, Minnesota, and Colorado. With a passion for helping homeowners save money and achieve their financial goals, Tracy combines years of expertise with a client-focused approach. Whether guiding first-time homebuyers or seasoned homeowners, she specializes in creating personalized strategies to maximize savings and build long-term wealth. When she’s not assisting clients, Tracy enjoys exploring the great outdoors, kayaking the Missouri River, and spending quality time with her family and grandchildren. Visit her online at tracyrobertshomeloans.com to learn more or schedule a consultation.

Tracy Roberts

Tracy Roberts is a dedicated mortgage broker with MSFG Home Loans, licensed in North Dakota, South Dakota, Minnesota, and Colorado. With a passion for helping homeowners save money and achieve their financial goals, Tracy combines years of expertise with a client-focused approach. Whether guiding first-time homebuyers or seasoned homeowners, she specializes in creating personalized strategies to maximize savings and build long-term wealth. When she’s not assisting clients, Tracy enjoys exploring the great outdoors, kayaking the Missouri River, and spending quality time with her family and grandchildren. Visit her online at tracyrobertshomeloans.com to learn more or schedule a consultation.

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