Mortgage Loans For First-Time Homebuyers
In this guide, we will cover mortgage loans for first-time homebuyers. Mortgage Lenders For Bad Credit are experts assisting first-time homebuyers on First-Time Homebuyers Mortgage Loans And Programs. A rough estimate shows about half of our clients are first-time homebuyers. Wendy Lahn, the Chief Legal Counsel for Mortgage Lenders For Bad Credit explains the definition of first-time homebuyers as follow:
The home-buying process can be incredibly confusing. This blog will go over examples of questions we receive from our first-time homebuyers. Many of our clients are not aware that you are once again considered a first-time home buyer if you have not owned a home in the previous 36 months (3 years).
Many of our clients purchased homes prior to the real estate crash of 2008, where the mortgage guidelines were very different if you could even call them guidelines. Since then, the federal government has created very standard and incredibly confusing mortgage guidelines. This is where Mortgage Lenders For Bad Credit will step in and clarify any questions. In this article, we will discuss and cover First-Time Homebuyers Mortgage Loans And Programs.
Understanding First-Time Homebuyers Mortgage Loans And Programs
Our team is assembled like a highly efficient assembly line. The process’s first step is to review your qualifications with a licensed loan officer. Our skilled loan officers are here to assist at your pace and answer all questions you may have surrounding the home-buying process. It is our goal to make sure you are educated throughout the entire mortgage process. We will now spend some time going over typical questions that first-time homebuyers ask.
Many first-time homebuyers will want to know if the time is right to buy a home. Recently, I heard a response that caught my ear to this exact question. A realtor in the Denver area made a joke saying the best time to buy a home was “yesterday”.
If you have been paying attention to the news, you will know that home value appreciation has been going up at historic rates. Meaning after you purchase a home, you could see gains in value in a short period. If you are renting, you know you are helping your landlord build equity in their property as well as an income stream. It’s time to start paying rent and building home equity.
The Importance Of Credit On First-Time Homebuyers Mortgage Loans And Programs
Next, we hear if my credit good enough to qualify. Mortgage Lenders For Bad Credit is a unique mortgage lender that does not have lender overlays to overcomplicate mortgage qualifications. Many banks will have extra strict lending requirements on their Conventional, FHA, and VA mortgage loans. Many banks require a 640 or 660 credit score to qualify for a mortgage loan.
The team at MortgageLenders For Bad Credit specializes in programs for individuals with less-than-perfect credit. That being said, Mortgage Lenders For Bad Credit require a 580 credit score for a low 3.5% down payment on an FHA mortgage. We even have programs that allow credit scores down to 500. If you require a conventional loan, you will need a minimum credit score of 620.
Should a real estate agent and attorney be involved? While it is not our department to tell you to use a real estate agent or an attorney, we can point you in the right direction. Most times, it does make sense to utilize a real estate agent so you can make sure you are getting the most competitive offer accepted. However, there are times when you may buy a house from a family member when it does not make sense to utilize a real estate agent. You want to check local and state requirements to know if an attorney should be involved or not.
Types Of First-Time Homebuyers Mortgage Loans And Programs
What programs are available for first-time homebuyers? This question can vary depending on the state and municipality you want to purchase a home. Many local programs may offer down payment assistance. While nothing is free, down payment assistance can help you get into a property as a first-time home buyer. Most of the time, you will pay a slightly higher interest rate to get help with the down payment. Keep in mind there are extra credit and income requirements to utilize most down payment assistance programs.
Fees And Costs For First-Time Homebuyers
Are there hidden costs I should be aware of? Just like any investment, there are things to keep in mind. When renting a home, you rely on your landlord for maintenance and emergencies. When you own your home, you want money set aside for repairs, utilities, insurance, yard maintenance, and a potential increase in insurance and property tax costs (which will raise your monthly payment). As property taxes rise, rent costs do as well. Something to keep in mind if you are weighing your rent versus your options.
How much are closing costs? This is a very common question, and the easiest answer is the closing cost can range anywhere from 2% to 6% of the loan amount, but this will vary dramatically. Some factors that can change closing costs are the type of loan, loan amount, local tax rate, local title fees, and third-party charges. To better understand fees in your area, reach out to our team. We will get you an estimate from a licensed loan officer.
Closing Costs On Home Purchase Transactions
Are there programs to help pay closing costs? As stated above, many first-time homebuyers are able to take advantage of the down payment assistance programs. However, the seller can also help pay all or a portion of your closing cost if this is negotiated in your purchase contract. It is not uncommon for a first-time home buyer to ask for seller credit to help absorb the closing costs. Having extra money for moving costs is a plus. This is when a real estate agent can come in handy. They can negotiate with the sellers to pay all or a portion of your closing costs to help you with future homeownership expenses.
How Much Homes Can I Qualify?
How much loan can I qualify for? This is a very loaded question, as each individual will have different mortgage qualifications. First-time homebuyers need to be aware of three main pillars of qualifications. The pillars are credit, assets, and income. Your credit profile and monthly obligations will affect how much of a mortgage payment you qualify for. Assets for down payment and closing costs will also increase your buying power. And income will determine your overall debt-to-income ratio and let you know your qualifications.
Getting Qualified And Pre-Approved
Once pre-approved, how long does the mortgage process take? Once you are preapproved, you and your realtor can find a home and get under contract. Once you are under contract, Mortgage Lenders For Bad Credit come back into the equation. Typically, we ask for a 30-day timeframe to close your mortgage transaction. However, it is not uncommon for a seller to ask for 45 or more days before closing the transaction.
Down Payment Required To Purchase A Home
Do I need a 20% down payment? Not. Needing a 20% down payment is a common misconception in the mortgage industry. There are low-down payment assistance options available.
An FHA mortgage loan only requires a 3.5% down payment (with a 580 credit score or higher), and if you served any time in the military, typically, no down payment is required. If you can put down 20%, you will eliminate the need for private mortgage insurance. I’ve had derogatory credit in the past. Can I qualify for a mortgage loan? The short answer is yes. We will need more information on the type of derogatory account and how long the account was delinquent.
For more information on private mortgage insurance, please contact Mortgage Lenders For Bad Credit at 262-627-1965 or email gcho@gustancho.com. We can even help families inside a Chapter 13 bankruptcy obtain mortgage financing. We specialize in lower credit score mortgage lending because we do not have overlays. Each derogatory event will have different waiting periods before you qualify, so reach out to our team today to review your specific credit events.
Getting Approved For First-Time Homebuyers Mortgage Loans
If you are a first-time or repeat home buyer and have additional mortgage questions, you can contact us qt Mortgage Lenders For Bad Credit seven days a week. Feel free to call us at 262-627-1965 with any mortgage-related questions. You may also email us at gcho@gustancho.com. Our team is ready to assist you and your family in buying your first home. There are very few situations we have not encountered, and we would love the opportunity to help you and your family. Even if a different lender has turned you down, we encourage you to get a second opinion today. If we cannot assist you, we will set you up with a custom financial plan to qualify immediately.
We look forward to assisting you with your mortgage needs.
