Getting a Mortgage as a First Time Buyer
It is natural to feel afraid when getting a mortgage for the first time. There are many thoughts that will go through your head. Will I have enough money to pay the mortgage each month? What if I lose my job? Will I have enough money to do other things like going out to eat. With questions like these running through your head it is easy to understand why there would be some trepidation.
While these are natural feelings they almost always go away quickly once you are in your home. One of the things that is so important to minimize these feelings is getting your financial house in order well in advance of your purchase. Doing things like checking your credit report for errors can be super helpful in making your your credit scores are where they should be.
Paying your bills on time and not making an large purchases should be part of your overall financial plan. If you have done these things getting a mortgage should be a breeze. When it comes to procuring financing there are going to be numerous first time home buyers programs to choose from. The article at Maximum Real Estate Exposure summarizes eleven of the most popular financing programs for first time home buyers. More than likely you will be choosing from among them.
Some of the more popular first time home buyer loans are FHA and VA financing. The attractive feature of FHA loans is the fact you only have to come up with a 3.5 percent down payment. With a low down payment requirement you can put more focus on saving your cash for other things like furnishing the house and having an emergency fund.
If you are serving or have served in the military a VA loan is worth checking out as well. The VA mortgage is one of the few no down payment loans available to home buyers.
Keep in mind that getting a mortgage is going to be one of the most crucial tasks when buying a home. The terms and conditions you receive from the lender are going to have a significant financial impact on your for years to come. It makes sense to do quite a bit of due diligence when searching for a first time home buyers loan.
I would recommend you get in touch with a mortgage broker early on in the process. Working with a mortgage broker can be super helpful because they can place your financing with an institution that matches exactly what you're looking for in a loan. Going to the local bank is often times a mistake. The chances of the local bank having the best terms and conditions for a first time home buyer are remote.
You want to put yourself in a position where you are looking over quite a few first time home buyer programs that could suit your needs. Take your time and pick the financing package that works best for you!
First Time Home Buyers ProgramFirst time home buyers programs explained