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Securing a First Time Home Buyer Loan in South Dakota
If you’re a first time home buyer in South Dakota, you have a few highly significant financial choices to make. These choices revolve around the loan you’ll take out to fund your home purchase. This process can create stress and frustration for many first time home buyers, and it’s our goal to ensure that this doesn’t happen to you.
South Dakota First Time Home Buyer Information
Making important decisions is much easier when you have all the facts and you know what you’re doing. Our first time home buyer checklist will walk you through all of the steps involved in the mortgage process and provide you the insight you need to make your loan decisions with ease and confidence.
Determine what loan amount you’re prepared to borrow. It’s unwise to take out a mortgage without seriously considering the effects it will have on your financial situation. If you get stuck in a mortgage that’s too much for you to handle, you could lose your home or face bankruptcy, or both.
Learn as much as you can about mortgages. Find out what each different mortgage type does and what you need to do to qualify for and maintain each one. This will help you decide what mortgage type to pursue.
Don’t hurt your credit score. Your credit score is a highly valuable thing if you’re trying to take out a mortgage. Don’t miss any payments or overcharge any accounts. You need to make sure your credit score is good.
Analyze the different options of mortgage rates and terms offered by lenders in your area. Depending on where you live and what type of loan you’re looking for, mortgage rates will vary. But many first time home buyers don’t realize that mortgage rates also vary between different lenders. Find the lender who offers the best rate.
Go through the preapproval process before you’re ready to buy. Get preapproved for the amount you need before you try to get the funds for your home purchase. If you get preapproved before you buy, it will make the whole process proceed much faster.
Each of these steps is essential to the home mortgage process. Don’t skip any one of them. To get started on square one, use the mortgage calculator we’ve included here to calculate your monthly payment amount.
1st Time Home Buyer Loan Programs
The South Dakota FHA loan program has helped hundreds of residents purchase homes who couldn’t otherwise have afforded a mortgage or qualified to get one. This is the goal of the Federal Housing Administration. The FHA wants to ensure that borrowers with lower credit scores and minimal cash on hand can still purchase homes and move into them.
South Dakota is home to the famous Mt. Rushmore. The state is mostly rural and has one of the lowest population densities in the country. Although it is not densely populated, it has a median home price of $79,600 and a homeownership rate of 68.2%, making it a great place for first time home buyers to purchase homes.