Money Tips for First-Time Home Buyers

Buying a house for the first time is super exciting—and wild! The process can take some time, and you’ll probably have lots of ups and downs along the way. After all, a home is probably the biggest purchase you’ll ever make.

Pay off all debt and build an emergency fund.

Okay, when you asked for first-time home buyer tips, you probably didn’t expect to hear about paying off debt. But it’s hands-down the most important.

Why? Because owning a home is expensive—trust me, maintenance and mishaps add up fast. It’s hard to maintain margin in your budget when you’re paying the costs of homeownership on top of your debt payments, and that’s a recipe for stress. So, before you even think about buying your first home, pay off all your consumer debt using the debt snowball method. You should also save an emergency fund of 3–6 months of expenses to cover unexpected costs.

Use the 25% rule to figure out how much house you can afford.

Before house hunting, determine how much house you can afford. Your monthly housing costs—including principal, interest, property taxes, home insurance, private mortgage insurance (PMI), and homeowners association (HOA) fees—should be 25% or less of your monthly take-home pay. It may seem like a small number, but here’s the deal, you guys: If more than a fourth of your paycheck goes to your house each month, your house payment can easily turn into a source of constant stress. And every time the house needs some type of repair (which will happen), you’ll feel like it’s the end of the world. That’s called being house poor, and it’s no fun. So don’t do it! Set your budget and stick to it.

Aim for a 20% down payment.

Once you figure out your house budget, it’s time to get serious about saving for a down payment. The more you save, the more house you can afford. It’s hard work, but having a big down payment can be a game changer when you start shopping.

How much? You should shoot for a 20% down payment so your lender won’t make you pay for private mortgage insurance (PMI)—insurance that protects your lender (not you) if you fail to make payments.

If 20% is out of reach for you as a first-time home buyer, a smaller down payment of 5–10% is okay too. Just be ready to pay PMI, which costs anywhere from 0.46–1.5% of your total annual loan balance. Here’s another thing: Your state may offer a down payment assistance program for first-time home buyers, but it’s usually best to stay away from those since they typically offer that “assistance” in the form of extra debt. Unless your state’s program offers a grant that you don’t have to pay back, don’t use it.

Save 3–4% for closing costs.

You should also plan to pay for buyer closing costs, which cover things like inspection and appraisal fees, loan origination and processing fees, property taxes, title insurance, and homeowners insurance. Closing costs for buyers tend to be about 3–4% of the cost of your home, not including the cost of a real estate agent. Some sellers might agree to pay part or all of the buyer’s closing costs to sweeten the deal, but every situation is different. So make sure you plan ahead. Source

Contact us today for more tips! 

Call us: (916) 847-3090

margeate@workhomeloans.com

Imagine Knocking Six Years Off Your Mortgage...

--When it comes to mortgages, most people focus on the obvious questions:

• “What’s my interest rate?”
• “What’s my monthly payment?”
• “Is this the right time to buy?”

And while those are definitely important… there’s one question that often gets overlooked — and yet, it could literally save you years of payments and thousands of dollars in interest.

Let me tell you a quick story.

It started with one simple question…

A few months ago, I was working with a couple who were finalizing their mortgage documents. They were excited — you know, that giddy kind of excitement that comes with finally getting the keys to your own place.

We were going over the loan terms, and I asked them:

“Did you check if there’s a pre-payment penalty on this loan?”

They paused. Looked at each other. Then back at me. “…What’s a pre-payment penalty?”

If you’re wondering the same thing — you’re not alone. Most people don’t realize that some loans come with a penalty if you pay off the mortgage early or even make extra payments outside the normal schedule. And that can be a major roadblock if you’re trying to build equity or save on long-term interest.

Luckily, their loan didn’t have a penalty — which meant we could get strategic. The real numbers that make a big difference, Let’s look at this in plain English — with real-life numbers.

Let’s say you take out a $550,000 mortgage at a 6.5% interest rate...

If you make the minimum monthly payments for 30 years, you’ll end up paying over $714,000 in interest by the time it’s all said and done. But… what if you added just $290/month to your mortgage payment? That’s about $3,500 per year.

Here’s what happens:

• You shave off about 6 years from your loan
• You save over $160,000 in interest payments

That’s a down payment on another property. That’s college tuition for your kid. That’s retirement savings. That’s freedom.

All from one smart move — that only works if your loan allows it.

So, what’s the takeaway?

Always ask:

“Is there a pre-payment penalty on this loan?”

This one simple question gives you the power to make strategic financial decisions that put more money back in your pocket over time.

Here’s the truth:

Sometimes the smartest thing you can do as a homebuyer isn’t just picking the lowest rate — it’s knowing what to ask before you ever sign on the dotted line. And the best part? You don’t have to be a math genius or financial planner to do this. You just need to be informed, ask the right questions, and work with someone who has your back.

(916) 847-3090

margeate@workhomeloans.com

I Dont Have A Down Payment To Buy A House...Is 100% Financing A Thing?

One of the most common things I hear from potential homebuyers — especially first-time buyers is:

“I’d love to buy a home, but I don’t have a down payment.”

Totally understandable. Saving up tens of thousands of dollars while also dealing with rising rent, everyday bills, and just… life, isn’t exactly easy.

So, the big question is —

Is 100% financing still a thing?

The answer: Yes. It still exists. And it’s more accessible than most people think.

Let me break it down for you...

The 100% Financing Option Most Buyers Don’t Know About

A client came to me recently, feeling a little discouraged.

They had a solid job, great credit, and were pre-approved for a mortgage — but the one thing holding them back was the down payment.

They asked, “Isn’t there any way to buy a home without putting 5%, 10%, or even 20% down?”

That’s when I introduced them to a 100% financing option that splits the loan into two parts — no down payment required.

Let’s walk through a real example using a $400,000 home:

• First mortgage (97%) = $388,000
• Second mortgage (3%) = $12,000

That adds up to 100% financing — the entire purchase price covered. You read that right: no down payment needed!

Monthly Payment Breakdown:

Naturally, the next question was: “Okay, so what would my monthly payment look like?”

Here’s the breakdown for the first mortgage:

• Principal & Interest: $2,581
• Estimated Taxes: $500
• Home Insurance: $300
• Mortgage Insurance: $325

That brings the total monthly payment to about $3,706.

Now, here’s the best part:

The second loan — the one covering the last 3% of the purchase — comes with:

• 0% interest
• $0 monthly payment

That’s right. You’re not required to make payments on that second portion, and it doesn’t accrue interest. This setup makes homeownership possible for buyers who are financially stable but just haven’t had the chance to save up for a large down payment.

What You Do Need to Cover

While you don’t need a down payment with this structure, you do still need to account for closing costs. Closing costs typically range from 2% to 4% of the home’s purchase price. In this example, that would be somewhere between $8,000–$16,000.

But here’s a strategy:

Many buyers negotiate a seller credit to help cover these expenses — especially in markets where homes are sitting a little longer and sellers are more flexible. So yes, it’s entirely possible to walk into a home with little to no money out of pocket.

Is 100% Financing Right for You?

Like any loan product, this isn’t a one-size-fits-all solution.

It’s a great option for buyers who have strong income and credit but don’t have liquid cash for a down payment. That said, your eligibility will depend on a few factors, like:

• Income and debt-to-income ratio
• Credit score
• Property location (some programs are specific to certain areas)

That’s where working with a mortgage expert (hi, that’s me) can make a big difference. I’ll walk you through your options, compare loan types, and make sure you understand the pros and cons of each one.

Final Thoughts

If you’ve been holding off on homeownership because of the down payment — it might be time to take a second look. Yes, 100% financing is real. Yes, it’s available in 2025. And yes, with the right guidance, it could be your ticket to finally buying a home of your own.

Want to explore your options or see if you qualify?

Reach out today and let’s chat. A quick conversation could be the start of something big — and it won’t cost you a dime to start.

margeate@workhomeloans.com

916-847-3090

Happy Mothers Day!

 

Happy Mothers Day from us at Work and Associates Home Loans! Hope you had a wonderful weekend celebrating how special you are!

(916) 847-3090

margeate@workhomeloans.com

DRE ID # 01769353

NMLS ID # 394275

Pros and Cons of a Mortgage

 

Advantages of a mortgage

• You’ll achieve homeownership. A mortgage allows you to purchase a home without paying the full purchase price in cash. Without a mortgage, few people would be able to afford to buy a home.
• You can cash in your equity. Equity in your home — the difference between the market value of your home and the amount you owe on the mortgage — can give you access to money when you need it. Many homeowners take out home equity loans or home equity lines of credit (HELOCs) to pay for home improvements, medical bills or college tuition.
• Your credit score may improve. Having a mortgage loan in good standing on your credit report improves your credit score. That credit score determines the interest rate you are offered on other credit products, such as car loans and credit cards.
• You may have extra tax benefits. The tax code currently provides tax benefits of homeownership. You may be eligible for a deduction for the interest paid on your mortgage, private mortgage insurance premiums, points or loan origination fees and real estate taxes. And when you sell your primary residence, you may be able to exclude all or part of your gain on the sale of your home from taxable income.

Disadvantages of a mortgage

• Your risk losing your home. Because your house is collateral for the mortgage, the lender has the right to take your home if you stop making payments. If the lender takes your home in a foreclosure, you’ll also lose any money already paid up to that point.
• Your home’s value could drop. Any property you purchase can lose value over time. If the real estate market drops and your home loses value, you could end up with a mortgage balance greater than the value of your house. This is called being “underwater,” and it can put you in a situation where you have to pay down the loan balance to sell your home since the loan balance is higher than your home is worth.

Source

Historic Windows: Restore or Replace?

 

 

Windows are the eyes of the home. Keeping historic windows is the desire of  a lot of homeowners but they don't always know when it is time to give them up. Come follow along because Brent thinks that historic windows are removed way too soon and too often. 

I Don't Have A Down Payment To Buy A House. Is 100% Financing Still A Thing?

Naturally, the next question was:

“Okay, so what would my monthly payment look like?”

Here’s the breakdown for the first mortgage:

• Principal & Interest: $2,581
• Estimated Taxes: $500
• Home Insurance: $300
• Mortgage Insurance: $325

That brings the total monthly payment to about $3,706.

Now, here’s the best part:

The second loan — the one covering the last 3% of the purchase — comes with:

• 0% interest
• $0 monthly payment

That’s right. You’re not required to make payments on that second portion, and it doesn’t accrue interest.

This setup makes homeownership possible for buyers who are financially stable but just haven’t had the chance to save up for a large down payment.

What You Do Need to Cover;

While you don’t need a down payment with this structure, you do still need to account for closing costs.

Closing costs typically range from 2% to 4% of the home’s purchase price. In this example, that would be somewhere between $8,000–$16,000.

But here’s a strategy:

Many buyers negotiate a seller credit to help cover these expenses — especially in markets where homes are sitting a little longer and sellers are more flexible.

So yes, it’s entirely possible to walk into a home with little to no money out of pocket.

Is 100% Financing Right for You?

Like any loan product, this isn’t a one-size-fits-all solution.

It’s a great option for buyers who have strong income and credit but don’t have liquid cash for a down payment. That said, your eligibility will depend on a few factors, like:

• Income and debt-to-income ratio
• Credit score
• Property location (some programs are specific to certain areas)

Final Thoughts...

If you’ve been holding off on homeownership because of the down payment — it might be time to take a second look. Yes, 100% financing is real. Yes, it’s available in 2025. And yes, with the right guidance, it could be your ticket to finally buying a home of your own.

Want to explore your options or see if you qualify? Reach out today and let’s chat. A quick conversation could be the start of something big — and it won’t cost you a dime to start.

(916) 847-3090

margeate@workhomeloans.com