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Everything You Need to Know About Buying Your First Home

How do I buy a home?
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Tip: It's best to talk with a lender and get prequalified for a mortgage before you start shopping for your first home. That way, you know how much money you'll be able to borrow.

4. Pull your paperwork together

When you're ready to talk with a lender, they'll need some documentation from you, including recent pay stubs, bank account statements, W-2s, the total amount of your monthly debt payments (such as car loans, credit card debt, student loans, etc.), and the names and addresses of your landlords for the past two years.

5. Find lenders and get prequalified for a mortgage

Many first-time homebuyers go to their local bank or credit union, and that's the best place to start. You can also apply at two or three different lenders to compare rates and loans offered. It's best to talk with a lender and get prequalified for a mortgage before you start shopping for your first home. That way, you know how much money you'll be able to borrow. You can also use the Synovus financial calculator to compare mortgages

6. Consider your mortgage options

Two of the most common options are fixed-rate and adjustable-rate mortgages.

  • With a fixed-rate mortgage, your interest rate is locked in for the life of the loan. That means you will pay the same amount every month and can plan accordingly.
  • An adjustable-rate mortgage, on the other hand, has a fixed interest rate for a set period of time, and then it fluctuates according to market inflation rates. Typically, this kind of mortgage offers a lower, more attractive, introductory rate. However, if the market interest rate increases, it is likely that your mortgage rate will increase as well. Adjustable-rate mortgages have more variability than fixed-rates ones and are hard to predict, so they are suitable mostly for individuals not planning on holding long-term mortgages.

7. Don't forget about closing costs

After you find the right home and the seller accepts your offer, you'll go through the process of purchasing the home, which involves paying closing costs to cover various bank, legal, and third-party fees. Closing costs can be paid by the buyer, the seller, or a combination of both; who pays for closing costs will be stated in the contract that your real estate agent negotiates for you. Closing can costs vary widely — from 2% to 7% — so talk with your realtor or mortgage broker to get a more accurate estimate of what to expect for your area and the type of property you're hoping to buy.

Ready to begin your home-buying journey? Get in touch with a Synovus mortgage specialist to learn about your options.

Loan are subject to approval, including credit approval.

Important disclosure information

  1. "Annual Credit Report," accessed on December 12, 2024. Back
  2. Dan Green, "How Much Should You Put Down on a House?," published November 22, 2024. Accessed December 12, 2024. Back
  3. Ben Luthi, "Should You Put Down 20% on a Home? Consider the Pros and Cons?," published November 19, 2022. Accessed December 12, 2024. Back

Mortgage Basics ebook

This guide can help answer your questions and even tell you how to get prequalified for a mortgage.