First-Time Homebuyer Q&A: What to Know Before You Buy a Home
Many questions will naturally arise when making the decision to purchase your first home. We’re here to simplify the process for first-time homebuyers with this Q&A sesh!
Q: What’s the first step in buying a home?
Fraser Team: The initial step in purchasing your first home is to get pre-approved for a mortgage. This process helps you understand your budget and strengthens your offer when bidding on a home. The Fraser Team recommends Movement Mortgage as our preferred lender.
Though the terms are sometimes used interchangeably, a pre-approval is different from a pre-qualification. A pre-qualification estimates how much you can afford to spend on a house, while a pre-approval is a more thorough check on your financial position, involving a credit pull.
Q: How much should I budget for a down payment?
Fraser Team: While 20% is often viewed as “traditional,” many first-time homebuyers opt to put down less. Some programs allow as little as 3%. With the OwnPGH Homebuyer Program, first-time home buyers can get as much as $90,000 towards the price of their first home!
Send us a message to ask more about options that might exist for you!
Q: What other costs should I expect?
Fraser Team: Aside from your down payment, expect closing costs to be around 2% to 5% of the purchase price. A home inspection is necessary to look for hidden structural problems with the house, so make sure to budget for a good inspector! Moving costs, such as truck rental costs, should also be considered.
Q: How do I choose the right neighborhood?
Fraser Team: The right neighborhood will mean something different to everyone! In general, we recommend considering factors like work proximity, school quality, safety, and local amenities. Our FREE neighborhood guide will give you the inside scoop on PGH. You can also check out our website for more info on Pittsburgh culture and neighborhoods!
Q: What should I look for during a home tour?
Fraser Team: A home tour is your first chance to investigate the condition of the home. Make sure to check for visible defects. Be aware that there may be hidden issues with the foundation, roof, electrical, or plumbing- your home inspection can help locate these problems before you close!
We always advise clients to look for outdated knob and tube wiring, the general condition of the roof shingles, moisture/mold in the basement or attic, and install/service dates on HVAC.
Q: How do I make a competitive offer?
Fraser Team:! This totally depends on the home you are buying and how much competition you are up against. We sometimes advise clients to go as far as 10% below the asking price, all the way up to 10% over the asking depending on the circumstances, market conditions, and comparable pricing. There are also other factors and terms to consider besides price that can strengthen your offer. Ask your Fraser Team agent what options exist for you!
Q: What happens after my offer is accepted?
Fraser Team: Rejoice! Your offer has been accepted and you’re well on your way to buying your first house! Next, you’ll go through the home inspection process to look for any hidden defects in the house. Appraisal comes soon after, determining the home’s value. Assuming all goes well, you’ll then finalize the mortgage by completing any remaining paperwork. This all leads up to closing day, which involves signing final documents, paying closing costs, and getting the keys to your dream home!
Q: What should I know about home maintenance?
Fraser Team: For first-time homebuyers, maintenance may seem like a foreign concept. What was once handled by your property manager or landlord is now up to you. But fear not- it’s not as complicated as it sounds. Some examples of regular maintenance include seasonal inspectionsfor your HVAC, cleaning your gutters, inspecting your roof, miscellaneous repairs, and yard work.
Q: What if I have more questions?
Fraser Team: That’s where we come in! The Fraser Team is happy to answer any questions you may have. We know that understanding the homebuying process is crucial for a comfortable, seamless experience for first-time homebuyers. We’ve got plenty of listings for houses for sale in Pittsburgh, so here’s to finding your perfect home together!
