First Time Buyer Loan Tips
For first time buyers, the
mortgage loan process can seem complex and confusing. On top of everything else, you need to figure
out interest rates, loan terms, fixed versus adjustable rate mortgages, and
more. In order to simplify and
streamline the process, there are a few things you should look into before you
apply for a home loan.
Be In The Know
It's a good idea to get a
copy of your credit report before you start applying for loans. There is nothing like getting yourself all
ready to go house hunting and finding out you won't qualify for a
mortgage. While knowing your credit
score won't tell you for sure if you will get a loan, it can prepare you for
what you will be told when you sit down with a mortgage professional. There are plenty of ways to get your hands on
a free copy of your credit report, and knowing your credit score will help you
know what sort of loan you might qualify for-or if you should wait and improve
your credit before you apply.
Look Into Special Programs
There are a number of
government programs for first time home buyers that you should be aware of
before you start applying for loans. You
might qualify for assistance with your down payment or for a lower down payment
on your loan. This can make a big
difference in the amount you can afford for your first home purchase. Take advantage of the first time buyer perks
that are out there.
Expect Out Of Pocket
Expenses
You will need to have some
cash in the bank before you can buy a home, and many first time home buyers are
surprised at the amount. There are
things like earnest money, closing costs, and more to consider when you apply
for a loan-that mortgage isn't the only cost of buying. Before you go in to apply, be sure you have
some extra cash on hand.
When it comes to buying
your first home, it can be a very exciting as well as a nerve-wracking
time. By doing your research and
preparing yourself for the process, you can ensure it goes more smoothly and
you don't run into any nasty surprises.
Once you get that loan ready, you can start the fun part-searching for
your first home!