7 Helpful Tips for First-Time Homebuyers
You’ve likely heard many reasons to become a homeowner — owning your home means building equity rather than paying rent, and you may qualify for tax deductions. Still, it can feel like a big commitment.
When you're ready to begin your journey into homeownership, our experienced Lyons Loan Officers are here to support you every step of the way.
1. Take a Look at Your Debt
Lenders want to see that you can handle both your current payments and a new mortgage. Try to keep your total monthly debt under about a third of your income. Paying down credit cards, car loans, or other balances before applying can make a big difference. The less debt you carry, the more flexibility you’ll have once you’re a homeowner.
2. Check Your Credit
Your credit score plays a huge role in what rate you’ll qualify for. Review your report early, fix any errors, and look for quick wins — like paying down balances or keeping credit use low. A higher score often means better rates and lower down payments.
3. Review Your Budget
Owning a home comes with a few new costs: property taxes, insurance, maintenance, and maybe HOA fees. Be sure to include these when planning your budget — and set aside a little extra for unexpected repairs. A clear budget helps you shop smarter and stress less.
4. Decide on a Down Payment
Your down payment doesn’t have to be 20%. Many buyers start with as little as 3–5%. Just remember that smaller down payments may include private mortgage insurance (PMI). A quick chat with your loan officer can help you figure out what works best for your goals.
5. Get Preapproved
Preapproval is your green light to start shopping. It shows sellers you’re serious and helps you understand what you can comfortably afford. Plus, it makes the buying process smoother from start to finish.
6. Choose the Right Type of Home
Single-family homes, condos, townhomes, duplexes — each has its own benefits and lifestyle fit. Condos or townhomes often mean less maintenance; single-family homes may offer more space. Think about what matters most to you before you start your search.
7. Explore Neighborhoods That Fit Your Life
Look beyond the house itself. Check out schools, commute times, parks, and local shops. Visit at different times of day to get a feel for the area. The right neighborhood should feel like a perfect match — not just for today, but for years to come.
