Are you searching for your first Austin Texas home for sale? If so, here are 5 tips that will make the process of finding your first home easier!

Start saving for a down payment early

 

It’s common to put 20% down, but many lenders now permit much less, and first-time home buyer programs allow as little as 3% down. But putting down less than 20% may mean higher costs and paying for mortgage insurance, and even a small down payment can still be hefty. For example, a 5% down payment on a $200,000 home is $10,000.

 

Play around with this down payment calculator to help you land on a goal amount. Some tips for saving for a down payment include setting aside tax refunds and work bonuses, setting up an automatic savings plan and using an app to track your progress.

 

Explore your down payment and mortgage options

 

There are lots of mortgage options out there, each with its own combination of pros and cons. If you’re struggling to come up with a down payment, check out these loans:

 

Conventional mortgages

 

They conform to standards set by the government-sponsored entities Fannie Mae and Freddie Mac, and require as little as 3% down.

 

FHA loans

 

Loans insured by the Federal Housing Administration permit down payments as low as 3.5%.

 

VA loans

 

Loans guaranteed by the Department of Veterans Affairs sometimes require no down payment at all.

 

Making a higher down payment will mean having a lower monthly mortgage payment.

If you want the smallest mortgage payment possible, opt for a 30-year fixed mortgage. But if you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Use our calculator to determine whether a 15-year or 30-year fixed mortgage is a better fit for you. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low interest rate for the first few years of your mortgage.

 

Research state and local assistance programs

 

In addition to federal programs, many states offer assistance programs for first-time home buyers with perks such as down payment assistance, closing cost assistance, tax credits and discounted interest rates. Your county or municipality may also have first-time home buyer programs.

 

Determine how much home you can afford

 

Before you start looking for your dream home, you need to know what’s actually within your price range. Use this home affordability calculator to determine how much you can safely afford to spend.

 

Check your credit and pause any new activity

 

When applying for a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and possibly the loan terms.

for opportunities to improve your credit, such as making a dent in any outstanding debts.

 

Check your credit before you begin the home buying process. Dispute any errors that could be dragging down your credit score and look our score from dipping after you apply for a mortgage, avoid opening any new credit accounts, like a credit card or auto loan, until your home loan closes.

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Search For Homes In Austin Texas

To learn more home buying tips, or to search for a home in the Austin Texas area, contact me today by calling (512) 944-7378 or connect with us online.