First Time Home Buyers

Buying your first home is a major decision in life — but the process of obtaining a

mortgage can be overwhelming. The paperwork, requirements, and fees can be a lot to

take the first time you deal with them. Once you’re ready, the next steps are to go over

each of the loan options available so you’re sure to get the best rates and terms

possible.

One of the problems first-time home buyers deal with is failing to understand their

credit score. Before applying for a mortgage, it’s vital to thoroughly review your credit

report and resolve any errors that may appear. A stronger credit history will generally

get you more favorable terms, and a lower interest rate on your mortgage. Depending

on the lender, the minimum credit score requirements for loan qualification are often

between 620 and 640.

Another problem first-time home buyer deal with is the requirement for a down

payment — but that shouldn’t prevent you from finding your dream home. Now a days

as little as 3.5% for FHA loans, 3% for some conventional programs, or even 0% for

qualifying service-members through the VA’s home loan program is all that is required.

Speak with one of our preferred lenders to see if you qualify for these loan programs.

In addition, you will be responsible for what is called closing cost While this number

depends on your home loan’s rate and terms, experts estimate that closing costs

typically range from 2-5% of the total mortgage. So, if you take out a mortgage for

$150,000 you’ll have to pay roughly $3,700 in closing fees, although they could be

more if you pay points to buy down your rate. In some cases, you can roll your closing

costs into the final loan amount to reduce the cash needed at closing.

Contact us for a free no obligation consultation. We would love to explain all this and more.

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