Where to Start if You’re a First-Time Homebuyer

By Buying September 2, 2020
Townhouse with blue siding and brick accent.

Mortgage Rates in the High Country of North Carolina are at an all-time low right now, so many people are considering buying their first home. If you are a first time home owner in the market for purchasing your own house, here are the first steps for your buying process.

Step #1: Start Saving For…

Your Down Payment

Since you’ve been staying home more because of COVID-19, you’ve had more time to save your money for a house. Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Use a down payment calculator to decide a goal, and then set up automatic transfers from checking to savings to get started.

Your Closing Costs

Closing costs are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around.

Your Move-in Expenses

You’ll need some cash after the home purchase. Set some money aside for immediate home repairs (you’ll never know when your home will need a septic tank repair, or some well maintenance), upgrades and furnishings.

Step #2: Choose Your Mortgage

A variety of mortgages are available with varying down payment and eligibility requirements. Conventional mortgages are not guaranteed by the government. Some conventional loans targeted at first-time buyers require as little as 3% down. FHA loans are insured by the Federal Housing Administration and allow down payments as low as 3.5%. USDA loans are guaranteed by the U.S. Department of Agriculture. They are for rural home buyers and usually require no down payment. VA loans are guaranteed by the Department of Veterans Affairs. They are for current and veteran military service members and usually require no down payment.

Step #3: Choose Your Real Estate Agent

A good real estate agent will scour the market for homes that meet your needs and guide you through the negotiation, due diligence, and closing process. Get agent referrals from other recent home buyers. When speaking with potential agents, ask about their experience helping first-time home buyers in your market and how they plan to help you find a home.

Feel free to contact 828 Real Estate, we would love to help you get started in the home buying journey. Fill out our contact form below or call us at (828)-386-6047.

Listing: Contact Form

About the Author
Sarah Long, NC Broker/Owner/REALTOR® • 828-773-2413 • [email protected]
I am a native of Knoxville, Tennessee, but I have been in North Carolina since1997 when I moved to Boone to attend Appalachian State University. I earned my degree in Theatre Education and Communications. While at ASU I met my husband, Matt Long, a Boone native and general contractor, and gained a heart for these mountains and my beloved ASU Mountaineers. After graduation, I spent 5 years teaching in Charlotte before being given the opportunity to move back to the High Country. In 2007 I earned my NC Real Estate License and began in full-time brokerage. In 2010 I helped to open a franchise brokerage in the High Country. I gained impactful knowledge and built important relationships during my 8 years there, but began to feel the calling to get back to my roots.

In June of 2018, my dream became a reality when I opened 828 Real Estate. We are a boutique brokerage that is locally focused, community-minded and client-driven. I feel so fortunate to be in a career that I love, have opportunities to serve wonderful clients, and get to work with the best team here at 828 Real Estate.

I am a member of The High Country Association of Realtors, the North Carolina Association of Realtors, the National Association of Realtors. I am a member the Boone Chamber of Commerce and I am on the board for the Downtown Boone Development Association. I have also completed the Realtor  e-Pro certification that specifically focuses on the technology tools needed in the purchase or sale of a property. Additionally, I have earned my CLHMS Designation. (Certified Luxury Home Marketing Specialist) and a qualified LuxuryHomes.com Affiliate. Over the years I have been awarded various Top Producer Awards. I am honored each year to be invited to the Top 50 Brokers in the High Country celebration.

My husband and I reside in downtown Boone and have 2 beautiful children, Sadie Rose and Levi. We attend Alliance Bible Fellowship and stay connected by serving the community and supporting local non-profits like Western Youth Network, The Appalachian Theatre and Valle Crucis Community Park. We love to spend time outside hiking, playing on the river, running with their dog, Emmie Lou, hitting the slopes and making the most of our time in this amazing place we get to call home!