First-Time Homebuyer? Here’s What You Really Need to Know
Sponsored by Synergy One Lending
Buying your first home comes with a lot of unknowns … and a lot of myths. How much do you actually need for a down payment? Does your credit score make or break your chances? Does buying a home still provide a good return on investment?
As leader of the Taravella Team at Synergy One Lending in Baton Rouge, Sales Manager Aaron Taravella (NMLS #364712) is in a perfect position to answer these and other frequently asked new-homebuyer questions.
What’s the most important thing first-time homebuyers should understand about getting a mortgage?
It starts with a consultation with a loan advisor to figure out your “buying power” within your budget or your specific needs, Taravella says. Everyone’s needs and goals are different, so it’s critical to do a thorough review of your current circumstances and short-, medium- and long-term goals upfront.
“Just because you can, doesn’t mean you should,” Taravella says. “Just because you qualify, it doesn’t mean it is the best option for you.”
Understanding your overall budget and monthly payments before the emotions of house-hunting kick in sets buyers up for long-term success, and less stress along the way.
How important is credit score, really?
It’s a factor, but only one of several. Credit scores influence both eligibility and interest rate: a higher score generally means lower rates and more loan options, while a lower score may call for a larger down payment or a different program.
But the score isn’t the whole story.
“A good lender will consider other factors like good rent history or savings and job time,” Taravella says. His team works with plenty of first-time buyers who have limited or challenged credit, helping them build the patterns that improve their score over time on the way to future homeownership.
What loan programs are out there, and how do I choose the right one?
Common options include conventional loans, FHA loans, VA loans for veterans, and USDA loans for certain areas.
“Conventional loans offer flexibility, FHA can be easier to qualify for with a lower down payment, and USDA offers 100% financing,” Taravella explains. “At Synergy One, we also specialize in non-traditional mortgage options including Bank Statement and 1099 programs for self-employed clients, DSCR (no income docs for investments), non-warrantable condos, asset depletion, reverse mortgages, and many more.”
Every program comes with its own pros and cons, which is why working with a loan officer who understands the full menu of options matters.
“It’s not a one size fits all,” he says.
Do I need 20% down to buy a home?
Taravella doesn’t mince words on this point: “This is probably the biggest myth,” he says.
Plenty of programs require no down payment at all, with others as low as 3%. Very rarely does a client — especially a first-time buyer — put 20% down. In most cases, it serves buyers better to keep their savings intact for reserves and emergencies rather than draining their account to hit that old benchmark.
Beyond building equity, what’s the biggest payoff of owning a home?
For Taravella, it comes down to pride and stability.
“A home can reduce stress on families and support mental health by providing a safe and stable environment,” he says.
Ownership deepens ties to community, schools and neighbors. It builds a stronger sense of belonging.
“The pride of ownership that comes with buying a home has many benefits to the long-term well-being of a family,” Taravella says.
You can’t put a price on that.
Learn more about how Synergy One can make your homebuying dream a reality by calling 225.337.0516 or visiting S1L.com/branch/baton-rouge/.
Synergy One Lending, Inc., NMLS 1907235 | www.nmlsconsumeraccess.org | 610 W. Ash Street, Suite 1505, San Diego, CA 92101 | (888) 995-1256 | AL, AR, FL, GA Residential Mortgage License #70829, LA, MS, NC, SC, TN, TX. All Loans are subject to underwriting approval. Terms and Conditions apply. Subject to change without notice. Equal Housing Opportunity.
