If you’re a first-time buyer who’s never financed a home before, the process can seem pretty daunting. You might discover a lot of options, which could make you feel overwhelmed as you get started.
Fortunately, we can work together (along with your loan officer) to make it less complicated. We’ll be there with you every step of the way.
And if you’re not quite ready to purchase a home, you can start preparing with the following tips to help you start the mortgage process on the right foot.
- Start saving now. You’ll need money for your down payment and closing costs, among other various costs. Depending on what loan programs you qualify for, you could have a down payment as low as 3% (or no down payment at all, in some cases). Closing costs typically range from 2% to 6% of your loan amount.
- You can get help with the costs. You may find communities, organizations and lenders that offer programs that can cover a portion of your down payment or closing costs. Many of them are grants that require no repayment.
- There are many mortgage options. FHA loans can be a good option for first-time buyers, since they allow for a lower down payment. If you’re a veteran or military member, you could qualify for a VA loan, which requires no down payment. You should look into USDA loans if you’re willing to buy a home somewhere rural. There are also conventional loans, so speak with your loan officer about what’s best for your situation.
- Shop around for a lender. There are plenty of mortgage lenders to choose from, so you don’t have to go with the first one you find. You should compare loan programs, rates and fees, as well as customer service, to make sure you’re getting the best deal.
- Get your credit in order. The better your credit score is, the more likely it is you’ll qualify for your loan and get a better interest rate. It can take time to improve your score, but it could lead to lots of savings in the long term.
Are you ready to start your home search? Get in touch today.
