Home Buying Tips for First-Time Home Buyers

You've decided now's the time: you're going to buy your first house. It can be an intimidating process, so here are a few tips to help your transition from renter to owner go smoothly:

Do Your Research

The first—and most crucial—step in home buying is to determine how much you're able or can comfortably afford to spend. That includes knowing how much of your savings you're willing to apply toward the down payment and how much you can afford each month for your mortgage payment. In general, housing costs (including property taxes, utilities, maintenance, and insurance) should not be more than 28 percent of your pretax (gross) income.

Build a Great Team

Purchasing a house isn't a one-person job; it takes a team. Assemble a group of experts that you trust and that will work with your best interests in mind - including a real estate agent and a mortgage loan originator.

We, of course, recommend a Prevail Bank Mortgage Loan Originator. Our Originators understand and can offer you numerous different loan types (conventional fixed, variable ARMs, FHA, USDA, VA, and others) --- Some of which may allow a 0% down payment! (Not all Originators can do this.) We will share the pros and cons of each, the details that would be important to you, and information on down payment assistance programs that could provide you up to $10,000!

Get Pre-Approved

Loan pre-approval is a free service at most banks and will boost your credibility with real estate agents and sellers because it shows you're more likely to get financing and are serious about buying a house. It will also make the process of applying for your mortgage faster, especially if you obtain the loan from the same bank that gave you your pre-approval. First, review your credit score and clear up any errors you find. (Prevail has solutions for this) Then, go to your bank and get pre-approved for the largest mortgage loan you can; keep in mind you probably won't/shouldn’t sign a mortgage for this "stretch" amount –-- or at least we don’t recommend it, because we don’t want you to stretch your finances too thin. You need to be able to save money for future emergency expenses and home maintenance. The ‘stretch’ amount simply gives you wiggle room while you're house hunting. 

Ask Questions

Buying a house is the most significant financial commitment most consumers ever make, and it can also be an emotional, stress-inducing process. Asking questions is important, to help reduce that stress. Home buying is complicated and it comes with its own terminology. Which is another reason why having a trusted and local Mortgage Loan Originator is important. They (we) can guide you through the process, as opposed to online lenders where you might end up talking to a chatbot or a different case manager every time you call.

At Prevail Bank, we believe that personalized assistance is key to your homeownership journey and our comprehensive Prevail Bank Property Playbook binder will provide the extra knowledge and self-assurance for a successful and happy experience. 

Want to Get Started?

With Prevail Bank, you can start your application from the comfort of your home (online) while still getting the personal guidance of a local mortgage expert.

If you click the teal “Find Your Mortgage Lender & More” button on our Begin Your Home Buying Journey webpage, the sandwich menu offers: Find a mortgage loan originator, Do a rate search, Start a new application, Finish an existing application, Login to secure doc center, and a Resource center.

A Quick Heads-Up

When you apply for a mortgage, credit bureaus (not the bank) can legally sell your information as a “trigger lead,” which may result in a flood of unsolicited calls and emails from other lenders. If you’d rather avoid that, opt out ahead of time – before you apply:

• Add your number to the Do Not Call List: www.donotcall.gov or call 1-888-382-1222
• Opt out of prescreened credit offers: www.optoutprescreen.com or call 1-888-5-OPT-OUT

Prevail Bank is an Equal Housing Lender.
Prevail Bank NMLS# 490977