Buying your first home
Buying your first home in Cincinnati
Three of my recent buyers were 30 or younger. One put 5% down, one 10% and one 20%. There is more than one way in, and here is how I help first-time buyers find theirs.
By Rhonda Everitt, REALTOR® with Comey & Shepherd Realtors.
Updated .
Do I need 20% down?
No. Conventional loans can start at 3% down and FHA loans at 3.5%. My youngest recent buyer was 21 and put 5% down with help from family. A couple of 24-year-olds saved 10% over several years. Another couple chose 20% because keeping a large emergency fund mattered more to them than buying sooner. Under 20% down usually means paying mortgage insurance, which a lender can price for you. More in how three young buyers did it.
How much should I spend?
Less than the maximum you are approved for, so a surprise repair does not become a crisis. Get pre-approved first, then pick a monthly payment you are comfortable with and keep cash in reserve. I compare the trade-off in down payment vs. cash reserves.
What does $275,000 to $325,000 buy around Cincinnati?
A real house, if you are flexible about location or a few projects. My buyers in that range found homes that needed paint and weekend work, or looked a little outside the city for more space. Lebanon and Centerville had medians of about $334,000 and $353,000 this summer, and many neighborhoods closer in still have homes in the $200,000s. Condos and townhomes are another way in.
Which loan is right for me?
That depends on your credit, savings and how long you will stay, so start with a lender conversation. FHA loans allow a lower down payment and are more flexible on credit; conventional loans can cost less over time once you have 20% equity. I can introduce you to local lenders who work with first-time buyers every week.
Should I skip the inspection to win the house?
I almost never recommend it for a first home. The inspection is how you learn about the roof, furnace, foundation and wiring before they become your problem. There are ways to make an offer stronger without giving it up, such as a quicker inspection period. Read Should you waive the inspection?
What happens after my offer is accepted?
Inspection, appraisal, final loan approval, a final walk-through, then closing, usually 30 to 45 days. I keep you on schedule and tell you what is coming each week, so nothing about closing day is a surprise.