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Buying a house for your first time

Buying a house for the first time is a big decision and often a stressful one. That’s why we compiled a few tips to help you get through the hard stuff before hitting that sweet finish line!

1. Budget.

Setting a realistic budget before you even begin browsing for houses online can save you from the disappointment of finding a house you completely love…but is out of your price range. Here is something you should know, the monthly expense will include more than just the mortgage interest and principal. Make sure when setting your budget that you include property taxes and homeowner’s insurance.

2. Credit Score.

It’s a good idea to know your credit score! A credit score is one of the most important factors when it comes to getting a great interest rate on a mortgage loan. Whether you have an average credit score or excellent one, it could make the difference between one or two percentage points on the interest rate (which can give a lot of savings every month.)

3. Down Payment.

For most homes, it’s common practice to make an almost 20% down payment at purchase. But for first-time buyers, some programs often allow as little as 3% down. While a 3% down payment may be help you get into your first home, it also comes with disadvantages. A down payment of less than the recommended 20% may result in higher additional costs and require you to obtain private mortgage insurance.

4. Insurance.

It shouldn’t be a surprise that you’ll need to purchase a homeowners insurance policy before moving any of your valuables into your new home. Working with a qualified broker will help you to get the best rate possible. At SOGO Wealth & Risk Management, we work with top rated carriers to ensure you get a great deal as well as the coverage you need to fully protect your new home and your family.

5. Realtor.

Sometimes doing things on your own isn’t the best route…especially when it comes to one of the most expensive purchases you’ll make! Getting an experienced realtor to ask the right questions for you can be more beneficial in the long run. Licensed realtors have access to valuable pricing, information, and should also have a network of home inspectors, lenders, and attorneys that you can rely on. Your real estate agent should be more of a consultant than a salesperson to help guide you through the process.

SOGO can work with you to help insure your new home and recommend one of our Trusted Partners to ensure a successful home buying experience. So start day dreaming about your new home and count on tips like these from SOGO to make your new home a reality!