What are the things you need to buy a house for the first time? Knowing exactly what you need as a first-time home buyer can help you prepare for a successful experience.

In this post, Nancy Kowalik and our Mullica Hill realtors at Your Home Sold Guaranteed Realty - Nancy Kowalik Group will break down everything you need to buy a house for the first time, from the very beginning of the process to post-purchase.

Key Takeaways:

• A good credit score leads to better mortgage terms and interest rates. Generally, a score of 620 or higher is preferred by lenders
• Collect recent pay stubs, W-2 forms, and tax returns from at least the past two years. These documents will be used to demonstrate the stability of your income to the lender.
• A mortgage pre-approval letter gives you a clear idea of how much home you can afford. It also makes your offers more appealing to sellers.
• Once you find a home you’re interested in, work with your realtor to draft an offer letter. This letter will outline your proposed purchase price, contingencies, and closing timeline.
• Set aside money for regular maintenance expenses as well as any initial upgrades or renovations you want to make after moving in.

What Are The Things You Need to Buy a House For The First Time?

What Do You Need To Get Started?

• High Credit Score: A good credit score leads to better mortgage terms and interest rates. Generally, a score of 620 or higher is preferred by lenders. Get a credit report from one of the three major credit bureaus to review your score and see whether it can be improved.
• Sufficient Savings for Down Payment: Down payments typically range from 3% to 20% of the home’s purchase price. However, first-time buyers are usually able to qualify for down payment assistance programs, which can reduce the cost to as low as zero down.
• Enough Funds to Cover Closing Costs: Closing costs are usually between 2% to 5% of a home’s purchase price and are used for fees related to the loan, appraisal, title insurance, and more. 
• Extra Money for an Emergency Fund: Set aside three to six months of living expenses to cover any unexpected costs, maintenance issues, or financial setbacks after purchasing the home.

What Documents Do You Need To Buy a House For the First Time?

• Government-Issued ID: You’ll need a driver’s license, passport, or other valid form of identification to apply for a loan.
• Proof of Employment: Provide your lender with proof of your current employment status and income. This usually comes in the form of a letter from your employer.
• Proof of Income: Collect recent pay stubs, W-2 forms, and tax returns from at least the past two years. These documents will be used to demonstrate the stability of your income to the lender.
• Bank Statements: Gather bank statements from the past two to three months. The lender will use these to verify your assets, savings, and spending habits.

House-Hunting

• Mortgage Pre-Approval Letter: A mortgage pre-approval letter gives you a clear idea of how much home you can afford. It also makes your offers more appealing to sellers.
• List of Home Preferences: Before you start looking for homes, prepare a list of the essential features you’re looking for, as well as what you’re willing to compromise on. This will make it easier to make tough decisions when evaluating homes.
• Find a Mullica Hill Realtor: As a first-time buyer, it’s essential to work with the best realtor in Mullica Hill and South Jersey. A professional is key to understanding the market and having a successful, stress-free experience.
• Research on the Local Area: Take some notes on different neighborhoods while you explore the area. Write down relevant information about home prices, schools, property tax rates, and available amenities. Your realtor can help you learn more about a specific community.
• Earnest Money: Earnest money deposits are usually 1% to 3% of a home’s purchase price. Have this deposit set aside for when you’re ready to make an offer on a home. 

How To Make an Offer When You Buy a House for the First Time

• Offer Letter: Once you find a home you’re interested in, work with your realtor to draft an offer letter. This letter will outline your proposed purchase price, contingencies, and closing timeline. 
• Home Inspection: A home inspection is essential to make sure the property is in the condition the seller says it’s in, and to verify there aren’t any potential issues that could end up costing you more down the road.
• Appraisal: Appraisals are typically required by lenders to check that the property’s market value is worth the loan amount. 
• Title Search and Insurance: A title company will conduct a title search to make sure there are no liens or disputes over the property. They’ll also provide title insurance to protect against any future claims on the property.
• Homeowners Insurance: Many lenders will require homeowners insurance, especially if you live in an area prone to natural disasters. 
• Complete Your Loan Application: Follow your lender’s requirements to complete your loan application and officially receive the funds.
• Final Walkthrough: Before you sign the closing paperwork, make sure to take one last walkthrough of the property to make sure it’s in the condition you and the seller agreed to.
• Closing Paperwork: Review and sign all the closing paperwork with the seller to transfer ownership of the home to you.

Post-Purchase

• Set Up Utilities: Set up or transfer utilities to your new home.
• Amenities and Supplies: Think about what you need to purchase for your new home, such as a home security system, new door locks, maintenance supplies, cleaning supplies and tools, and/or necessary furniture.
• Maintenance and Upgrades: Set aside money for regular maintenance expenses as well as any initial upgrades or renovations you want to make after moving in.

Nancy Kowalik is the Best Choice for First-Time Buyers in Mullica Hill

Buying a home for the first time requires a knowledgeable real estate professional. At Your Home Sold Guaranteed Realty - Nancy Kowalik Group, Nancy Kowalik and our team have years of experience working with first-time home buyers in Mullica Hill and South Jersey. 

Our team can easily help you buy a house in Mullica Hill or the surrounding areas for the best possible price. We also commit to delivering high-quality customer service and provide several unique buyer guarantees like our Buy it Back Guarantee. 

Give us a call at (856) 478-6562 to learn more about our team or find Mullica Hill homes for sale. You can also use the form below. Don’t have to wait to make your real estate dreams come true!

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!