Maryland First Time Home Buyer Loans

If you’re a first time home buyer in Maryland, you’re choosing to purchase a home in one of the wealthiest and most technologically advanced states in the nation.  This can be a great financial advantage for you, but it may also make financing your home purchase that much more difficult.  We’re here to help you make sense of the process.

Maryland First Time Home Buyer Information

We’ve put together a first time home buyer checklist to introduce you to the steps involved in the process.  Feel free to check it out.  We’ve made sure to summarize the five most important steps here.

• Figure out how much you can afford.  Don’t take out a mortgage that you won’t be able to handle.  This is one of the most important steps in the process.
• Identify the loan type you need.  There are many different types of loans you can take on, each with different characteristics.  Determine which is best for your personal financial situation.
• Monitor your credit score and repair it if necessary.  This one is self explanatory.  A bad credit score will get you a dangerous loan.
• Compare interest rates offered by more than one lender in your area.  This is just like shopping around for any other product.  Mortgage quotes are free.  Ask as many lenders as you can what rates they’re able to offer.
• Get preapproved.  This step forms an agreement between you and the lender and gives you full assurance that you’ll be able to get the loan you need.  All of this should happen before you start looking for the home you plan to buy.

If you’re able to follow each of these steps, you shouldn’t have any trouble closing the mortgage loan you need.  If you want more information about your mortgage, consider trying out our mortgage calculator to get started on your financial planning.

1st Time Home Buyer Loan Programs

By far the most effective specialized loan program for first time home buyers is the Maryland FHA loan.  Every FHA loan is insured by the Federal Housing Administration with the goal of enabling individuals without high credit or high income to purchase homes.

Many first time home buyers are just starting out and don’t have high credit scores or significant cash reserves built up.  This makes the FHA program a solid choice for home purchase financing.

Check the Maryland FHA loan limits to determine if your loan will fit with the program.  For more information, see the Maryland page of the FHA website.

About Maryland

Maryland is regarded as the second wealthiest state in the nation.  Maryland culture is said to be split evenly between a Northern feel and a Southern hospitality.  The state has over three hundred and fifty biotechnology firms.  The Food and Drug Administration headquarters is located in Maryland, along with the famous John Hopkins Medical Institute.  The homeownership rate is 67.7% and the median home price is roughly $146,000.

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