Buying a house for the first time feels huge, but it doesn’t have to be a nightmare. You just need the right info, a realistic budget, and a few smart moves. Below you’ll find the basics that most newbies miss, plus the latest help you can grab in 2025.
First thing – check your credit score. Lenders usually want at least a 620 score for a conventional loan, but the higher, the better rates you’ll see. If your score is lower, focus on paying down credit cards and fixing any errors on your report. Next, figure out how much you can afford. A good rule is that your mortgage payment (including tax and insurance) shouldn’t be more than 30% of your gross monthly income.
Once you have a realistic number, think about the down‑payment. Many first‑time programs let you put down as little as 3% of the purchase price. In North Carolina, for example, the NC Down Payment Grant can add up to $15,000 if you meet income and purchase‑price limits. Other regions have similar grants, so search for local assistance.
Getting pre‑approved shows sellers you mean business and locks in a rate before rates move. Talk to a few lenders – banks, credit unions, and online brokers – to compare offers. Ask about fee‑only loans, which reduce closing costs, and see if any buyer‑rebate programs apply after the recent NAR settlement changes.
When you compare, look beyond the interest rate. The annual percentage rate (APR) includes fees, so a slightly higher rate with lower fees could be cheaper overall. Also, ask if you qualify for any first‑time buyer programs that waive appraisal fees or reduce mortgage insurance.
Now you’re ready to start hunting. Use a platform that lets you filter by price, location, and features you need – like a garden or public transport access. Remember, the cheapest house isn’t always the best deal once you add closing costs, repairs, and moving expenses.
Don’t forget to budget for closing costs. In North Carolina, buyers typically pay about 2‑3% of the purchase price in fees, taxes, and insurance. Some costs can be negotiated – ask the seller to cover part of the transfer tax or title insurance.
Finally, schedule a home inspection. Even if the house looks perfect, an inspection can uncover hidden problems that could cost thousands. If major issues pop up, you can negotiate repairs or a price cut before you sign.
First‑time buying is a learning curve, but with a solid budget, the right mortgage, and a bit of grant money, you can turn that “maybe someday” into a real address you can call home.
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