All You Need to Know About Tips for First Time Home Buyers Buying a home is not an easy task. It may turn out to be a daunting task for many. It’s not only about the paperwork; it’s the terminology, the fee structure and the number of people who are involved. It’s quite natural to sign everything and go through the process as fast as you can. We have discussed here two of the most useful first-time home buyer programs that you should look upon. There is no need to rush through the process. They may also score you some big savings.
1. Federal Housing Administration (FHA) For many Americans, this is a good program, especially for first-time home buyers who have the credit history that’s shaky. The Federal Housing Administration guarantees a portion of home loans, that frees lenders to broaden their acceptance standards. With FHA backing, borrowers can qualify for loans with as little as 3.5% down. FHA loans have an up-front and ongoing additional cost built in and mortgage insurance premiums. It protects the lender’s stake in the loan if you default. 2. United States Department of Agriculture (USDA)
This may surprise you. The USDA offers a home buyers assistance program. And you don’t have to live on a farm. The program targets rural areas and allows them 100% financing by offering lenders mortgage guarantees. Their income limitations vary by region. If you are in the market for a loan, whether you are a student, homeowner or potential vehicle owner, it is of the utmost importance to ask the right questions of your future lender. Here we have shared some of the tips to make the first-time home buying journey a little less stressful. a) Start to save for the down payment It’s quite common to put the 20% down, but many lenders now permit much less, and first-time home buyer programs allow as little as 3% down. But putting down less than 20% may mean higher costs and paying for private mortgage insurance, and even a small down payment can still be hefty. b) You need to determine how big home you can afford? Before you start looking for your dream home, you need to know what’s within your price range. Use a home affordability calculator to determine how much you can safely afford to spend. c) You need to check your credit When you’re taking out a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and solve your query about “How to Get a First Time Home Buyers Grant”?
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