Buying a home for the first time can be overwhelming. Many first time homebuyers are not aware of all resources they have at their disposal, until after they have finalized the sale. Uninformed buyers tend to make hasty decisions, ones they later regret.
If you are a first time homebuyer in the market for a new home, take a minute to read this report. Here are 6 things 1st Alliance Lending thinks you need to know about first time homebuyers programs. One important aspect of choosing the best first time home buyers programs is to find out what different types of mortgage programs there are. Find out what they offer, and most importantly, which ones you qualify for. There are some steps you can take on your own, to help you prequalify for a first time homeowner’s loan as well.
- Ask about the new FHA “Back to Work” mortgage. This mortgage is designed to assist families who are struggling to get back on their feet, financially. This is a relatively new program. The wait time for this program is 12 months. If you can show you have recovered from your financial hardship, after one year, you may be able to obtain this loan. Having a foreclosure does not count against you, or disqualify you..
- Improve your credit score before applying for a mortgage. Many lenders won’t tell you, that your credit score affects the amount of money you pay for a down payment, the percentage of your interest rates and the amount of your monthly mortgage payments, but it does. Start by obtaining all three-credit reports, and checking them for accuracy. Pay off as many bills as possible..
- Pre-qualify for a loan. Once you have improved your credit score, you can now apply for a loan. Get the best rates, with the lowest interest rates. Be sure to read the fine print. What you don’t know can hurt you in the future. Ask questions, and never agree to a contract, unless you understand the terms..
- Choose your own lender. You have the option of choosing a lender that is perfect for you. No one knows better than you, what you can and cannot afford to pay in mortgage payments. Choose a lender that is willing to work with you, not against you..
- Ask a realtor to help with your search. Let the realtor know that you are a first time homebuyer, and you are looking for a home within a specific price range. The realtor may give you a complete listing of homes in which you can afford. Look over the list thoroughly, and visit the homes that peak your interest..
- Negotiate the price. The asking price is not necessarily the price you have to accept. Owners, including banks and lending institutions, might consider lowering the prices of most homes, if the buyers will only ask. Therefore, use your voice of influence and ask for a better deal. Negotiation might work best on homes that have been idly sitting on the market for months or years.
To talk more about the first time homebuyers programs, or to see how we can help you, please contact us.