1. What’s the number one piece of advice you give to first-time home buyers? 

Homeownership is one of the biggest decisions — and financial investments — you’ll ever make. So you want to know you’re taking all the right steps.

Therefore, says Simental, it’s important to seek professional advice sooner rather than later.

The sooner you prepare, the easier it’ll be. So even if buying is still a few years off, use this time to create a savings plan for your down payment and other mortgage-related expenses. And take steps to clean up your credit. 

Good first steps include:

2. What are the biggest misconceptions that people have about buying their first home? 

Some people drop out of the market or choose not to buy because they believe “it’s going to be too hard,” says Simental. But while the process does have its challenges, it’s far easier when you have the right team guiding you along the way.

In other words: you don’t have to go it alone.

The real estate agent and loan officer you choose to work with will be there every step of the way — from setting your budget and choosing a loan program, to finding your dream house and closing on it.

So take some time putting together an ace team before you set out to buy a house.

“The best way to have a great team is by working with someone who has great reviews online, or who’s a referral from a trusted family member or friend,” Simental recommends. 

3. What are first-time home buyers often surprised by?

First-time homebuyers are usually surprised by the many options available to them, explains Simental. 

4. What’s a common mistake first-time buyers make? 

One of the biggest mistakes a first-time home buyer can make is “going house hunting before they’re pre-approved for a home loan,” says Simental. 

5. What questions should first-time buyers ask?

To reiterate, it’s okay to ask a lot of questions — and you should.

According to Simental, you should start out with the basics to figure out how much home you qualify for. Ask your lender:

• What’s the difference between a pre-approval and a pre-qualification?
• How much house can I afford on my current income?
• How much should I save for the down payment and closing costs?
• What’s included in my monthly mortgage payment? 

Once you’ve chosen a home and you’re ready to move forward with a full loan approval, you should ask a few more questions to narrow down the right mortgage lender. For instance:

6. What are the perks of being a first-time homebuyer?

First-time home buyers might get access to special options that other buyers don’t, like down payment and closing cost assistance programs as well as low-down-payment mortgages. Options vary by location, but these programs are usually accessible to those who haven’t owned a home within the past three years.  

But, Simental stressed, the best programs really depend on an individual’s situation and there’s “no one-size-fits-all” solution for first-time buyers.

Your loan officer will assess your eligibility and help you find the right type of mortgage for your situation.

7. What advice would you give to people who want to buy a house, but have lower income or limited cash to save each month? 

“Speak with a trusted loan officer and come up with a realistic game plan of how (and when) you can become a homeowner,” Simental recommends.

Buying might be easier than you think once you’ve explored all the options available in today’s mortgage market.

Qualifying borrowers can take advantage of programs that offer:

• Lower down payment requirements (0-3%)
• Lower credit score requirements (580-620)
• Flexible income guidelines
• Help with your upfront lender fees and closing costs
• Affordable mortgage rates
• Reduced private mortgage insurance (PMI) costs

8. What are the best first-time home buyer programs? 

“An FHA loan with 3.5% down is a great option,” Simental says. “You can also get a conventional loan product with 3% down, as well as USDA loans and VA loans with 0% down — but you must meet certain parameters for these two programs.”  

Again, Simental stressed that “It totally depends on the individual. And I know I sound like a broken record but it’s true.” So explore your options and find the right type of loan for your home purchase.

9. What advice would you give to first-time home buyers tin today’s crazy real estate market? 

Between bidding wars and low inventory, buyers typically act fast in tough real estate markets. However, buying in today’s market as a first-time homebuyer requires patience, warns Simental.

And, he says, “it doesn’t hurt to work with a team you trust and like.”

A good agent or Realtor can communicate listings and schedule showings early, and help you craft the most enticing offer. They can also work with the seller to negotiate any obstacles to closing, like home appraisal or home inspection issues.

Your loan officer is also key. They will help you understand your budget, the amount of money needed to buy, and what your future mortgage payments will look like.