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The First-Time Homebuyer’s Guide to Success

Written by EFCU | May 2, 2025 9:46:53 PM

Buying your first home is one of life's most exciting—and sometimes overwhelming—milestones. Whether you're just starting to save or already house hunting, understanding the process can help you feel more confident and prepared.

Good credit helps with mortgage approval. You'll see two main types of mortgages:

  • Fixed-Rate Mortgages: Offer stable interest rates and predictable payments for the entire loan.
  • Adjustable-Rate Mortgages (ARMs): Feature interest rates that change after an initial fixed period, potentially leading to fluctuating payments. ARMs might start with lower rates, but consider your risk comfort and long-term outlook.

Next, create a budget and savings plan. Most lenders recommend saving at least 20% of the home's price for a down payment, but there are programs that allow for less.

Get pre-approved for a mortgage so you know how much home you can afford. This also shows sellers that you're a serious buyer.

Work with a trusted real estate agent and don't rush. Take your time to find a home that fits your lifestyle and budget.

Watch out for common homebuying mistakes:

  • Overlooking hidden costs: These include property taxes, HOA fees, and home insurance, which can strain your budget.
  • Skipping home inspections: This can lead to discovering costly repairs after you've bought the house.
  • Getting emotionally attached: This might cause you to overpay or ignore potential problems with the property.

Stay objective and financially ready for your first home purchase. With the right planning and support, your dream of homeownership can become a reality. 


Contact EFCU for guidance and mortgage options that fit your needs!

 

Intended for informational purposes only. To obtain an EFCU loan, you must have or open an EFCU membership and maintain a minimum deposit of $25. Rates for this product are determined by an evaluation of applicant credit. Federally insured by NCUA. Equal Housing Lender. See credit union for details.

 
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