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7 tips for first-time homebuyers

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.

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

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. AnnualCreditReport.com, accessed February 7, 2020. Back
  2. Consumer Financial Protection Bureau, “How to decide how much to spend on your down payment," published January 30, 2017, accessed January 31, 2020. Back
  3. Dellitt, Julia, "How To Decide Between A 5%, 10% And 20% Down Payment," published June 29, 2018, accessed February 7, 2020. Back

Mortgage Basics ebook

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