Tips for First-Time Homebuyers

Buying your first home is a major milestone – one that can be met with both excitement and stress. As one of the top mortgage lenders in the Midwest, GreenState has helped hundreds of first-time homebuyers achieve the dream of homeownership. This month, I’ll be breaking down common myths and questions I hear from first-time buyers.

Not a first-time homebuyer? Please share this with someone who is!

Frequently Asked Questions from First-Time Homebuyers

I’ve summarized the most common questions I receive from first-time buyers below. Don’t see your question? Reach out to me and let’s set up some time to talk through all of your questions in detail.

Q: How much can I afford?
A: There are many factors at play when it comes to home affordability. If you’re just starting to think about buying a home, there are a number of helpful calculators on GreenState.org. You can compare renting to buying, get an idea of how much you’d qualify to borrow, and even estimate monthly payments. If you’re further along in the process, you can always reach out to me to get prequalified.

Q: What programs are available to first-time buyers?
A: Program availability varies depending on where you plan to buy. I can help you explore and navigate federal, state, and local options - including credits, down payment assistance, and grants.

Q: Do I need to get prequalified?
A: Prequalification helps you understand your buying power and can strengthen your offer to a seller and the seller’s real estate agent. Getting prequalified can also jumpstart the loan approval process once you’ve decided to buy a home.

Q: Do I need a 20% down payment?
A: No, you don’t need a 20% down payment to buy a home. In fact, many buyers secure their homes with less. At GreenState, we offer options and programs that meet your individual needs. I can help you find the best solution and will guide you each step of the way.

COMMON QUESTIONS

Q: What are closing costs?
A: Closing costs are associated expenses beyond your down payment that are paid on closing day. These costs typically include appraisal fees, origination fees, taxes, and government recording fees.

Q: What if I don’t live in Illinois or Iowa?
A: GreenState can lend in all 50 states! No matter where you’re hoping to buy, reach out to me and I can help.