How To Successfully Navigate the First-Time Homebuying Journey
The homebuying process can feel both exciting and overwhelming, especially for first-time homebuyers. Between budgeting, credit checks and finding the right property, it’s easy to wonder where to begin. The good news? You don’t have to figure it out alone.
This guide breaks down what every first-time homebuyer should know to move from dreaming about owning a home to actually holding the keys. Here’s how to prepare, what to expect and how Compeer Home can help you make confident decisions at every step.
1. Understand Your Finances and Budget Wisely
Before your dream can become reality, start by reviewing your household income and monthly expenses. Determine a realistic mortgage payment that leaves room for daily living costs and savings. Don’t forget to include homeowner’s insurance and property taxes when planning your budget.
Begin saving early for closing costs and unexpected expenses. To help you get started, use our mortgage calculator to see how different loan amounts, interest rates and down payments could fit into your budget. It’s a simple way to understand what you can comfortably afford before you begin your home search.
With Compeer Home’s First-Time Homebuyer Program, you may qualify for a 0% down payment option and avoid private mortgage insurance (PMI), which can make monthly payments more affordable for many first-time buyers.
2. Check and Strengthen Your Credit
Your credit score plays a key role in the loan approval process. If it’s lower than expected, take steps to improve it by managing your credit responsibly. Compeer Home allows co-signers, which can help those who may not qualify for a loan on their own.
To qualify for Compeer Home’s First-Time Homebuyer Program, you must be a true first-time buyer, meaning you haven’t owned a home in the past three years. This includes displaced homemakers and single parents who only held joint ownership with a spouse during that time.
3. Choose the Right Property for Your Lifestyle
Think long term when selecting your new home. Consider your current needs and how they may evolve in the future. Compeer Home can finance a wide variety of rural properties, including homes with acreage, hobby farms, small-town residences, manufactured homes and unique builds like barndominiums, cabins and shed homes.
4. Monitor the Local Market and Work with Experts
Stay informed about your local housing market. Low inventory and high demand can lead to quick sales and competitive pricing. Working with an experienced realtor can save you time and simplify the offer and negotiation process.
Trusted experts make mortgages for first-time buyers easier. Partner with a Compeer Home loan officer who understands rural properties and can help guide you through the process.
5. Explore All Your Mortgage Options
Several loan programs are available to first-time buyers, each with its own benefits and requirements:
- VA Loans: For military service members, offering as little as 0% down.
- FHA Loans: Require about 3.5% down but have acreage limitations.
- Conventional Loans: Offered through banks, typically starting at 3% down with PMI if you have less than 20% down.
In addition to its zero percent down option, Compeer Home offers patronage dividends and flexible servicing options like rate conversions, helping you save even more over time.
6. Plan Ahead for Payments
Consistent, on-time payments are essential for protecting your credit and avoiding late fees. You can mail payments, use online bill pay or set up an Automated Clearing House (ACH) payment for reliable, automatic withdrawals.
Your Next Step Toward Homeownership
Buying your first home is a major milestone, and having the right knowledge makes all the difference. From budgeting to finding the right property, every step brings you closer to your goal.
Compeer Home’s First-Time Homebuyer Program is here to help make that process smoother, and to empower you with the resources to make informed decisions.
To continue building your confidence, take our short First-Time Homebuyers online course. It’s free, flexible and full of expert insights to help you feel prepared for every part of your journey.
