THE FINANCING ROADMAP
Step 1
Understand Your Budget
Before diving into home shopping, you need to know how much you can afford. Start by looking at your income, expenses, and savings. Many financial experts recommend keeping your monthly housing costs (including your mortgage, taxes, and insurance) at or below 28% of your gross monthly income.
Step 2
Check Your Credit Score
Your credit score plays a big role in determining the loan terms you qualify for. A higher score often means lower interest rates, which can save you thousands over the life of your loan. If your score could use some improvement, focus on paying down debt and making payments on time.
Step 3
Explore Loan Options
Conventional Loans: These are not backed by the government and typically require a higher credit score and down payment.
FHA Loans: Backed by the Federal Housing Administration, these are great for first-time buyers or those with lower credit scores. They often require smaller down payments.
VA Loans: Available to eligible veterans and active-duty military members, VA loans offer competitive terms and often don’t require a down payment.
USDA Loans: Designed for rural areas, these loans are for low-to-moderate income buyers and may not require a down payment.
Step 4
Save for a Down Payment
Most lenders require a down payment of at least 3-5%, though 20% is ideal to avoid private mortgage insurance (PMI). Start saving early by setting aside a portion of your income each month, cutting unnecessary expenses, or using bonuses or tax refunds.
Step 5
Get Pre-Qualified
A pre-qualified shows sellers that you’re a serious buyer. It also gives you a clear idea of how much you can borrow, so you don’t waste time looking at homes outside your price range. To get pre-qualified, you’ll need documents like proof of income, tax returns, and information about your debts and assets. Pre-qualification can take a day or two, so make sure you get this done before scheduling a showing.
Step 6
Understand Mortgage Terms
Mortgages come in different shapes and sizes. Here are a few key terms to know:
Fixed-Rate Mortgages: Your interest rate stays the same for the life of the loan, which provides stability.
Adjustable-Rate Mortgages (ARMs): Your interest rate can change after an initial fixed period, which might make your monthly payments fluctuate.
Loan Term: Common terms are 15, 20, or 30 years. Shorter terms mean higher monthly payments but less interest paid overall.
Step 7
Don’t Forget Closing Costs
Closing costs are fees you’ll pay at the end of the buying process, typically ranging from 2-5% of the loan amount. These include appraisal fees, title insurance, and more. Be sure to budget for these expenses to avoid surprises.
Step 8
Work with a Trusted Agent
As your real estate agent, I can be an invaluable resource in navigating the financing process. I can recommend reliable lenders, help you understand your options, and advocate for your best interests every step of the way.
Step 9
Stay Realistic
It’s easy to fall in love with a home that’s beyond your budget, but overextending yourself can lead to financial stress down the road. Stick to your budget and remember that your first home doesn’t have to be your forever home.
Need a lender recommendation? Scroll down and contact one of my preferred lenders.
My Trusted Lenders
Tom Thayer
NMLS #1288820
tomthayer@successmortgage.com
Joseph Vetter
NMLS #1057282
jvetter@yourbank.com
Fred Brooks
NMLS #785735
loans@caponvalleybank.com
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Got Questions?
SID BELCHER | REALTOR®
304.703.7272 | Call or Text
sidbelcher@premiermove.com
WV - WVS230302812
___________________________________
115 Aikens Center, Martinsburg, WV 25404
304.263.4800 | Office
STEVE DUBRUELER, BROKER
What do other clients think about working with me?
"Sid Belcher did an outstanding job selling my home in Petersburg, West Virginia. Sid was able to get top dollar and he is very responsive. He is a great problem solver for situations that pop up unexpectedly. He is easy to work with and you will not be ignored or put on the back burner. I highly recommend Sid Belcher if you want to sell or buy a home." - Betty C.
"Sid did a fantastic job keeping me up to date on status of the offer stage, things to look out for in the home buying process, and generally being on top of everything needed during buying my first home. I could not recommend him enough to anyone who is buying their first, second or even tenth home. Thank you Sid!" - Brian J.
"Sid was incredible in assisting us with the purchase of our home. He went above and beyond and made sure we were comfortable with the whole process. I highly recommend him and consider him a friend." - Frank B.
"I would highly recommend Sid as a real estate agent, he always responded in a timely manner, very thorough but not pushy and had a good feel for what we were looking for." - Keith L.
"Absolutely outstanding! We had such a wonderful experience working with Sid over several months until we found our perfect piece of property. Don't waste your time calling anyone else!!" - Susanna C.
"Sid was awesome! So responsive and really cared about finding us exactly what we were looking for. Very professional every step of the way. I would definitely work with him again. Highly recommend! ⭐️⭐️⭐️⭐️⭐️" - Nicole W.
Servicing Eastern West Virginia | The Potomac Highlands
Grant County, WV | Hardy County, WV | Hampshire County, WV | Mineral County, WV | Pendleton County, WV | Morgan County, WV | Berkely County, WV | Jefferson County, WV
Arden, WV | Back Creek Valley, WV | Baker, WV | Bakerton, WV | Barber, WV | Bayard, WV | Bedington, WV | Berkeley Springs, WV | Blue Ridge Summit, WV | Bolivar, WV | Bunker Hill, WV | Burlington, WV | Cabins, WV | Capon Bridge, WV | Charles Town, WV | Cherry Grove, WV | Cherry Run, WV | Circleville, WV | Delray, WV | Duffields, WV | Falling Waters, WV | Fort Ashby, WV | Franklin, WV | Gerrardstown, WV | Glengary, WV | Gormania, WV | Great Cacapon, WV | Halltown, WV | Hancock, WV | Harpers Ferry, WV | Headsville, WV | Hedgesville, WV | High View, WV | Hillsboro, WV | Hightown, WV | Inwood, WV | Jones Springs, WV | Jones Spring, WV | Kearneysville, WV | Keyser, WV | Leetown, WV | Little Georgetown, WV | Lost City, WV | Mathias, WV | McCoole, WV | Middleway, WV | Maysville, WV | Meade, WV | Moorefield, WV | Mount Storm, WV | Mountain Lake Park, WV | Needmore, WV | Old Fields, WV | Opequon, WV | Pikeside, WV | Piedmont, WV | Purgitsville, WV | Paw Paw, WV | Petersburg, WV | Petersburg Junction, WV | Pikesville, WV | Redman, WV | Rig, WV | Ranson, WV | Rippon, WV | Rio, WV | Romney, WV | Rushing Creek, WV | Scherr, WV | Seneca Rocks, WV | Shanks, WV | Shannondale, WV | Shepherdstown, WV | Short Gap, WV | Sleepy Creek, WV | Slanesville, WV | Smoke Hole, WV | South Berkeley, WV | South Fork, WV | Spring Mills, WV | Spring Run, WV | Springfield, WV | Summit Point, WV | Tablers Station, WV | Thornwood, WV | Tomahawk, WV | Upper Tract, WV | Van Clevesville, WV | Wardensville, WV | Warm Springs, WV | West Virginia | Westernport, WV | Wolford, WV | Yellow Spring, WV | Yellow Springs, WV
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