Your renting days are over, and you feel ready to take on the journey of homeownership. But before you can commit to finding your dream home, there are a few things you might want to address. Having worked with first-time buyers like you for over 50 years, we have found these questions to be some of the most vital.

Q: Am I ready to buy a home?

This may seem like an obvious one, but all the same important. Why? Because becoming a homeowner means taking on new responsibilities, and that shouldn't be taken lightly. Here are a few follow-up questions to help determine your readiness.

- Am I ready to maintain a home?

- Do I have a steady income/stable employment?

- Do I have a positive history of paying bills?

- Have I saved for/am I prepared to make a down payment?

- Can I afford a mortgage, taxes, utilities, and insurance?

- Do I qualify for a mortgage?

If you were able to answer these questions with confidence – great! You're ready to move on to our next FAQ.

Q: How much do I need for a down payment?

The amount you put down is dependent on your lender but generally falls between 5-20%. In a perfect world, everyone would put down 20% because of benefits like these: lower monthly payments, better interest rates, and a competitive edge over other potential buyers.

But if you can't put 20% down – or even close to that amount – don't panic. There are many programs available to assist you.

Talk to your lender to come up with a plan that works for you.

Q: What is the difference between pre-qualified and pre-approved?

Two key steps in the mortgage application process are pre-qualification and pre-approval. Although you've probably heard the words used interchangeably, there are some important differences to note.

First up – pre-qualification. Pre-qualification is meant to estimate how much you can borrow based on what you told your lender. This can be done over the phone or even online and doesn't take into account credit reports/history – meaning it doesn't hold as much weight as the pre-approval.

Pre-approval is the final say. It provides a set-in-stone answer about how much you can borrow and what your interest rate will be. Here, you'll be required to complete and submit the necessary paperwork and documentation to paint a clearer picture of your borrowing capability.

Do you have to be pre-qualified and approved to start looking? The short answer is no, but it will save you from looking at homes that might be out of reach.

Q: What are the homeowner's tax benefits?

A huge benefit of buying over renting is the tax benefits. Many first-time buyers are eligible for the following...

Mortgage Interest

Home Equity Loan Interest

Discount Points

Property Taxes

Necessary Home Improvements

Home Office Expenses

Private Mortgage Insurance

Capital Gains

We will take a deeper look at these benefits in a future blog post, but don't forget to talk to a tax professional before buying a home to discover which of these apply to you.

Q: Do I need to work with a real estate agent?

Choosing to work with an agent is a no-brainer for a number of reasons, but especially for buyers because it costs nothing to gain everything. The right real estate agent will take time to learn your unique situation and help match you with a home you love.

They can get you pre-approved, set up tours, negotiate offers, lead communication with the sellers' agent, tie loose ends at closing, and of course, celebrate when you find the one.

They are even there to ensure you don't miss any unturned stones in the process. Things you may not even think of, they know to look into – like choosing the best home inspector in your area or helping you read and understand the report.

Agents will take on the less glamorous parts of the process, making your experience easier and more enjoyable.

We hope these FAQs helped you gain a better understanding of what to think about before buying your first home. Agents at The Masiello Group are eager and excited to help you meet your real estate needs! Contact us today to start your home-buying journey.

---

The Masiello Group is a second-generation family company that has been a trailblazer in New England real estate since 1966. With now more than 35 offices throughout northern New England, we're the largest residential real estate firm north of Boston to offer a complete suite of home services, including buying, selling, mortgage, title, insurance, relocation, and more.

You can find more information on today's market and other real estate trends by reading our blog weekly at https://www.masiello.com/news-and-updates/.