When searching for a first time home buyer loan, you may be confused and filled with doubt or intimidation. This is normal. We understand. Purchasing a home is a major financial decision, and it’s good that you’re not taking it lightly. It is certainly wise to fully equip yourself with accurate knowledge and research.
Once you have made the decision to buy a new home you must find the perfect property. The internet has simplified this process. Many sites allow you to view and compare homes in your area instantly.
When you agree to take on a first time home buyer loan, you are entering into a mortgage agreement. Your mortgage is determined by the amount of your loan minus your down payment.
There are many loan programs available to help people achieve their dreams of homeownership. Even if you are considered below poverty level or have a low income or minimal cash reserves, there may be a program available for you that will not only include the down payment but also provide 100% financing. VA loans provide these benefits and more and are available to veterans.
By contacting your local housing department or HUD office, you will find various first time home buyer loan options that you qualify for. Every state offers different programs. Check with the government offices within your state to find out what these options are in your area. This list of HUD state offices will help you identify whom to contact.
Even if you don't qualify for a program, you can take the necessary steps to reach your goal. Whatever you do, don't give up. There are loans readily available for you if you set your mind on them. There are USDA and other government loans and grants that you can apply for as well.
On our site, you can also shop for the best FHA mortgage rates and terms for an FHA loan. The FHA administers one of the best mortgage options for first time home buyers. FHA loans are easy to qualify for and provide many financial benefits.
Your first step is to contact the appropriate agencies that can point you in the right direction and help you find the loan of your choice. Another great resource is your own personal bank. Make an appointment with your bank loan officer and discuss your plans. Your bank loan officer can offer great insight into which first time home buyer loan programs will best fit your needs.
Once you have done your research and met with the appropriate people or agencies, you will be able to determine which loan is right for you. You will also determine how much you can afford, whether a fixed or adjustable mortgage is best for your needs, and what steps you need to take to adjust your credit and become better qualified for the loan. Take advantage of the resources and programs that are available for you, do your homework, and enjoy your new home.