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First-Time Homebuyers

Embarking on the path to your first home is an exciting milestone. It's also filled with questions and decisions.


Those of us on the Justin Kraeger Mortgage Team understand the unique challenges and opportunities that come with buying your first home. That's why we’re not just here to guide you, but to educate and empower you, ensuring you make informed decisions every step of the way.

A man and a woman are dancing in their new home . the woman is holding a key.

Understanding the Basics

What is a Mortgage?

A mortgage is essentially a loan that helps you buy a home. Unlike most other loans, a mortgage is secured by the property you purchase. This means if you can't pay the mortgage, the lender can take the home back. There are several types of mortgages available, each with its own advantages:


  • Fixed-Rate Mortgages: Offers a constant interest rate and monthly payments that never change. This is a great choice if you plan to stay in your home for a long time.
  • FHA Loans: These loans are insured by the federal government and offer lower down payments and are easier to qualify for than conventional loans, especially for first-time homebuyers.
  • VA Loans: Exclusively for veterans and active military, offering significant benefits such as no down payment and no private mortgage insurance (PMI).

How Much Can I Afford?

Determining how much you can afford to spend on a home involves a careful examination of your income, debts, and long-term financial goals. It's not just about how much a lender is willing to give you. Consider these factors:



  • Income: Your total household income before taxes.
  • Debts: Monthly obligations like car payments, student loans, credit card debt, and other loans.
  • Expenses: Daily living costs and unforeseen expenses like medical emergencies.
  • Down Payment: The larger your down payment, the less you have to finance, and the lower your monthly mortgage payment will be.


The Justin Kraeger Mortgage Team is here to help you calculate an affordable home price range based on your financial situation.

The Homebuying Process Simplified

Step 1

Pre-Approval

Before you start looking for a home, it's essential to understand how much you can afford. This is where pre-approval comes in. During pre-approval, a lender reviews your financial information—like your credit score, income, and debts—and tells you how much you can borrow.


This step not only helps you set a realistic budget but also shows sellers that you are a serious buyer, which can give you a competitive edge in the market.

Step 2

House Hunting

With pre-approval in hand, you can start looking for your new home. This exciting phase involves browsing listings, visiting open houses, and determining what you want and need in a home.


Consider factors such as location, size, amenities, and, importantly, future growth potential of the area. Create a list of must-haves and nice-to-haves. Be ready to act quickly in competitive markets but avoid compromising on essential features.

Step 3

Make an Offer

When you find the right home, it's time to make an offer. This is a formal proposal to buy the house, usually accompanied by a deposit to show good faith. The offer will include the purchase price and other terms, such as contingencies that allow you to back out under specific conditions.



We'll help you determine a competitive yet fair offer based on market analysis and the home's condition. We can also assist with negotiation strategies to improve your chances of success.

Step 4

Home Inspection & Appraisal

Once your offer is accepted, it's crucial to conduct a home inspection and appraisal. An inspection reveals any issues with the home’s condition, while an appraisal determines its value.


You'll want to hire a professional inspector to identify potential problems that could cost you down the road. Plus, the appraisal affects your loan amount, so if the appraisal comes in under the purchase price, you may need to renegotiate with the seller or cover the difference.

Step 5

Closing

Closing is the final step in the homebuying process. This is when you sign all the paperwork, finalize the loan, and take ownership of the home. It typically takes place at a title company or attorney’s office and involves several parties.


Be ready to sign a lot of documents. We'll ensure you understand each one and feel confident about what you're signing. Once everything is signed, the keys are yours! Congratulations, you are now a homeowner.

What People Say About Us

Ready to Start Your Homeownership Journey?

Taking the first step towards buying your first home is both thrilling and a bit daunting. But you don't have to do it alone. The Justin Kraeger Mortgage Team specializes in turning the complex process of buying a home into a clear, straightforward journey.


As you move forward, remember that our team is just a phone call or email away. We’re here to assist you through every step, from your first questions to the day you hold the keys to your new home.


Let's make your dream of homeownership a reality. Contact us today to schedule your free consultation and take the first step towards a future in your new home.

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