Buying your first home is exciting, but if you’re looking in New York’s Capital Region, there’s a lot to think about beyond finding the right house.
From Albany and Troy to Schenectady, Saratoga and the surrounding communities, where you buy can affect everything from property taxes to your overall monthly housing expenses. Getting your financing in order early can help you understand your options, set a comfortable budget and approach your home search with more confidence.
Here are a few things to consider as you get started.
It’s easy to jump straight into browsing listings and scheduling showings. But one of the best first steps is talking with a mortgage loan originator.
A loan originator can review your financial situation, discuss available mortgage loan programs and help you understand the price range and estimated payment that may work for you.
During the mortgage process, lenders typically evaluate factors such as income, employment, credit, available assets, existing debts, property type and how the home will be used.
Getting organized early can make the process easier once you find a house you want to call home.
One of the most important things for a first-time homebuyer to understand is that the purchase price isn't the same thing as the total cost of owning the home.
Your monthly housing expenses may include:
That means two homes with similar prices could look very different in your monthly budget.
Homestead also provides mortgage calculators that can help buyers explore how principal and interest, taxes and insurance contribute to an estimated mortgage payment. These calculators are for planning and educational purposes, and actual costs and loan terms can vary.
Property taxes are an especially important part of your homebuying budget.
As you compare homes throughout the Capital Region, don't look at the listing price alone. Consider the estimated property taxes along with your mortgage principal and interest, homeowners insurance, applicable mortgage insurance and other housing expenses.
Before making an offer, talk with your lender about how the estimated taxes associated with a particular property could affect your projected monthly payment.
That gives you a more useful comparison than looking at purchase prices alone.
Capital Region buyers may have access to resources offered through local housing organizations and municipalities.
Depending on where you're purchasing, resources worth researching can include organizations such as:
Programs and funding can change, and eligibility may depend on factors such as income, purchase location, property, household circumstances or other program requirements. Some programs may also require homebuyer education or counseling.
The key is to research assistance early, rather than waiting until you've already found a home.
Local assistance isn't the only resource available.
Eligible New York buyers may also want to explore programs available through the State of New York Mortgage Agency (SONYMA).
Homestead Funding offers SONYMA programs for eligible borrowers, including options that may provide competitive fixed interest rates, low down payment opportunities and down payment assistance. Income, purchase price and other eligibility requirements apply and may vary by program.
Your loan originator can help you compare SONYMA with other financing options and determine which programs you may qualify for based on your individual situation.
Saving for a down payment and closing costs is important, but your homeownership budget shouldn't stop at closing day.
Homes need ongoing maintenance, and unexpected repairs happen. You'll also be responsible for expenses such as utilities, homeowners insurance and property taxes.
Before deciding how much you're comfortable spending on a home, think about the whole financial picture.
You don't necessarily have to purchase at the maximum amount you may qualify to borrow. Leaving room in your budget for maintenance, savings and the other things that matter to you can help you choose a home and payment you're more comfortable with.
Buying your first home comes with plenty of questions, and having experienced professionals available can make the process easier to navigate.
Homestead Funding has local mortgage professionals serving the Capital Region and surrounding areas. Homestead has 5 branches within the Capital Region and many more in the surrounding areas with Loan Originators available to help buyers explore mortgage options and navigate the financing process.
You don't need to have everything figured out before talking to a lender.
Starting the conversation early can help you better understand your financing options, prepare for the costs associated with buying a home and approach your Capital Region home search with a clearer budget in mind.
Ready to take the next step? Connect with a local Homestead Funding mortgage professional to discuss your homebuying goals and explore the financing options that may be available to you.
Loan programs, terms, eligibility requirements and assistance programs are subject to change and may vary based on borrower qualifications, property and other factors. Not all applicants or properties will qualify. Contact a Licensed Loan Originator for current program requirements and available options.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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