Tips for First Time Home Buyers

It brings us joy to put families in homes they can make memories in. It brings us even greater joy to know that families will be able to continue to afford that home since we strive to build with energy saving materials. We understand that purchasing a home is no small feat. If you are looking to do so for the first time, here are a few things you should get in order so that you can be as prepared for the experience as possible.

Down Payment

One of the biggest hurdles to home ownership is saving up for a down payment. A 20% down payment is ideal and it will help bring your monthly payments down, but it is not required. 3, 5, and 10 percent down payments are also acceptable and fairly common among first time homebuyers. There are also several first-time home buying programs that you can talk to your lender about.

Credit Score

Another factor you want to give attention to before you begin your search is your credit score. Your credit score will greatly influence the kind of loan, if any, that you will be able to attain. A poor credit score would fall between 620-680, mid-range would be 680-740, and anything above 740 would be the highest standard. Also, while tending to your credit, be mindful that a lender will measure your debt-to-income ratio. So, you will want to make sure that you do not have too many lines of credit open.


Once you have your down payment saved up and your credit score in a good place, now is the time to talk to a lender. They will be able to give you an estimate of how much home you can afford, along with an interest rate. On top of that, they can provide you with a pre-approval letter. This letter will not only help you have an idea of what kind of homes you can look for, but it will also let a seller know that you are serious and ready to buy.

When you do start in on your home search, what better place to start than Energy Smart New Homes! Browse our available listings today.

By Energy Smart New Homes 7-14-2021