First-Time Homebuyers Guide

Buying your first home starts with understanding your budget, comparing mortgage options, and knowing what to expect before closing. iTHINK Financial can help you explore financing, prepare your application, and take the next step toward homeownership.

You do not necessarily need a 20% down payment to purchase a home. iTHINK Financial offers up to 100% financing for qualified first-time homebuyers. Your mortgage representative can explain available programs and the requirements that apply to your situation.

What Should First-Time Homebuyers Know Before Getting Started?

Before looking at homes, take a close look at your finances. Understanding what you can comfortably spend helps you choose a home that supports your goals without stretching your budget too thin.

Start With a Realistic Budget

The amount you qualify to borrow may be higher than the amount you feel comfortable spending. Review your take-home pay, existing debts, savings goals, and regular expenses before choosing a price range.

Your mortgage payment is only part of the cost of homeownership. Include property taxes, homeowners insurance, utilities, maintenance, and any homeowners association fees.

• Estimate a comfortable total monthly housing payment.
• Plan for moving expenses and initial home purchases.
• Keep savings available for repairs and unexpected costs.
• Compare different down payment amounts and loan terms.

Understand Your Local Market

Home prices and ownership costs vary across South Florida, the Treasure Coast, metro Atlanta, and other communities. Compare neighborhoods based on the full cost of living, including commuting, insurance, taxes, and maintenance.

Review expenses for the specific property you are considering instead of relying only on an advertised monthly payment.

Learn Before You Buy

Homebuyer education can help you understand financing, inspections, appraisals, and closing documents. iTHINK Financial offers homebuyer webinars monthly to help you prepare for the process.

Explore mortgage resources and upcoming homebuyer webinars.

What Mortgage Options Are Available for First-Time Buyers?

Your mortgage choice should reflect your budget, available savings, and plans for the home. iTHINK Financial offers fixed-rate and adjustable-rate first mortgages, along with up to 100% financing for qualified first-time homebuyers.

Fixed-Rate Mortgages

A fixed-rate mortgage keeps the same interest rate for the life of the loan. The principal and interest payment stays consistent, which can make budgeting easier. Your total payment may still change if property taxes, insurance, or escrow requirements change.

Adjustable-Rate Mortgages

An adjustable-rate mortgage, or ARM, has an initial fixed-rate period followed by scheduled rate adjustments. Review how often the rate can change, the adjustment limits, and the potential payment after the initial period.

Consider whether you could afford a higher payment if your plans change and you remain in the home longer than expected.

Up to 100% Financing

Qualified first-time homebuyers may be eligible for up to 100% financing through iTHINK Financial. This can eliminate the down payment requirement, although closing costs, prepaid expenses, and other funds may still be needed.

Speak with a mortgage representative about eligibility and the financing options available to you.

Explore first mortgage options and current rates.

Why Choose a Credit Union Over a Bank for Your Mortgage?

iTHINK Financial is a member-owned, not-for-profit credit union. Our mortgage team can help you compare financing options, understand your borrowing costs, and prepare for closing.

• Personal guidance: Work with a mortgage representative who can explain your options.
• First-time buyer financing: Explore up to 100% financing for qualified buyers.
• 60-day rate lock: Ask about locking your mortgage rate during processing, subject to application and purchase-contract requirements.
• Published rates with zero discount points: Review current pricing assumptions and discuss available rate buydown options.

Compare Loan Estimates using similar loan amounts, terms, and pricing assumptions. Look at the Annual Percentage Rate (APR), lender fees, discount points, and total closing costs in addition to the interest rate.

How Much Should You Save for a Down Payment and Closing Costs?

The amount you need depends on your loan program, purchase price, and available assistance. A down payment reduces the amount borrowed, while closing costs cover expenses associated with completing the transaction.

Compare Down Payment Options

On a $300,000 home, a 5% down payment is $15,000 and a 10% down payment is $30,000. These examples illustrate the math; they do not establish the minimum down payment for a particular iTHINK Financial program.

A larger down payment reduces the loan balance, but it also uses more of your savings. Compare the payment difference with the amount of cash you want available after closing.

Plan for Closing Costs

Closing costs may include lender fees, appraisal charges, title services, recording fees, and applicable taxes. Prepaid insurance, interest, and initial escrow deposits may also affect the total funds needed at closing.

iTHINK Financial offers lower closing costs than many banks and mortgage brokers for buyers in both Florida and Georgia. Georgia borrowers must still pay applicable intangible recording tax. Ask your mortgage representative to explain the taxes and fees included in your estimate.

Keep a Financial Cushion

Leave room in your budget for moving, maintenance, and unexpected repairs. Your mortgage representative can help you compare financing scenarios and balance your down payment with the savings you want to keep available.

Does iTHINK Financial Offer Down Payment Assistance?

Down payment assistance may be available, in most cases up to $17,500 while funds are available. Assistance amounts, locations, and qualification requirements depend on the program.

You can apply online or visit an iTHINK Financial branch for assistance with the application process. Speak with a mortgage representative about available programs and their requirements.

Ask whether assistance must be repaid and whether selling, refinancing, or moving out of the home could affect the terms.

Ask about homebuyer assistance.

How Do You Get Preapproved for a Mortgage?

Start by completing iTHINK Financial’s online mortgage application, which generally takes about 15 minutes. Completion time may vary based on the information provided. A registered loan officer will typically follow up by the next business day to review your options and explain the next steps.

Completing the application is the starting point. Preapproval timing varies based on your circumstances and the information needed to review your application.

1. Review your budget. Decide what monthly housing payment fits your finances.
2. Gather requested documents. Prepare identification, income documentation, asset statements, and information about existing debts.
3. Complete your application. Provide accurate information and respond to follow-up requests.
4. Review your options. Discuss loan programs, estimated costs, and any conditions with your mortgage representative.

Preapproval is not a guarantee of final loan approval. Your representative will explain any remaining requirements.

View a typical mortgage document checklist. Depending on your situation, the list could be smaller or larger.

Key Takeaways

• Choose a monthly housing budget that fits your everyday life.
• Compare mortgage programs and total borrowing costs.
• Budget for closing costs and expenses after moving.
• Ask about 100% financing and available assistance.
• Prepare your documents and stay in touch with your mortgage team.