Buying your first home is an exciting time! It’s a time when you’ll be making one of the biggest financial decisions of your life. That’s why it’s important to work with a team that can help you navigate the process and make sure you’re getting the right loan for your needs.

One thing that is a bit confusing is that, technically, a “first time home buyer” is anyone who has not owned a home in the past three years, not just first time buyers. Also, there are very few programs with specific advantages or discounts for a first time home buyers only. Most apply to all buyers. We love FHA loans for first time home buyers. Low down payment, higher DTI limits and the use of gift funds are just a few reasons why.

First-time buyers understandably have questions and concerns about the home-buying process. Our goal is to educate you on the process and help you make informed decisions. We want you to feel confident about your purchase, and we’ll be with you every step of the way.

Understanding Your Credit Score and What It Means for Your Loan Options

Credit scores range from 350 to 850. The higher your score, the better your chances of getting approved for a loan with a competitive interest rate. We have FHA and VA loans for clients with a 500 score and up!

If you have a low credit score, we can help you understand what steps you need to take to improve your score. We counsel clients everyday on the correct things to do to improve their scores and to get the home they want. Don’t guess what you should do, ask us!

What is a Pre-Qualification?

A pre-qualification is an estimate of what you may be able to borrow based on the financial information you provide to the lender. We recommend that you get pre-qualified for a loan before you start shopping for a home. In fact, many Realtors require a prequalification before they will show homes to you.

Understanding the Different Types of Loans Available

There are many different types of loans available, and it’s important to choose the right one for your situation. We can help you understand the difference between fixed-rate and adjustable-rate loans, as well as government-backed loans like FHA and VA loans. We’ll work with you to find the loan that’s right for you.

Finding a Real Estate Agent

It’s a good idea to find a real estate agent before you start looking for a home. A real estate agent can help you understand the home-buying process, and they can provide you with information on homes that are for sale in your area. We recommend interviewing 2-3 agents before you choose one to work with.

You can ask your friends and family for recommendations, or you can search for agents online. When you interview an agent, be sure to ask about their experience, their knowledge of the area, and their track record.

Making an Offer on a Home

Once you’ve found the perfect home, it’s time to make an offer. Your real estate agent will help you determine how much to offer, and they will negotiate with the seller on your behalf. The goal is to get the best price possible without offending the seller.

Sellers may be attached to their homes, and they may not be willing to budge on price. However, if you’re not able to reach an agreement, don’t be afraid to walk away from the deal. There are other homes out there, and you don’t want to overpay for your home.

During this time, remember the importance of your credit score. We do not recommend making any large purchases or opening any new lines of credit, as this could jeopardize loan approval.  It is wise to speak with your loan officer to see how these and other changes may affect and/or delay the loan application. A loan cannot be fully approved until it successfully goes through the underwriting process.

Closing on Your Home

You’ve almost reached the finish line! Before the keys to your home are placed in your hands, there are a few things that need to be taken care of. When the loan application is approved, make sure you are familiar with the terms of the loan and be sure to read over the paperwork carefully. Your mortgage loan officer will be available to assist with any questions you may have. You don’t want to be hit with any surprises, so be sure to ask questions if you don’t understand something.

Your New Home

Congratulations! All your hard work has paid off, and you can now start enjoying your new home. This is just the beginning of your journey as a homeowner.