The first thing you want to do is prepare and review your finances. Your credit score is very important when discussing finances with a lender so you want to do whatever you can to make sure it’s at the highest it can possibly be. You will also want to review your credit reports to make sure any derogatory marks on there have been fixed if they can be removed or disputed.
If you are like most thinking about buying a home for the first time, you are probably overwhelmed by the prospect of coming up with so much money for a mortgage or down payment. You are not alone. In fact, many first time home buyers don’t have a large down payment, so they may think that means they have limited options to buy a home, or that they may not be able to buy a home at all.
Of course the larger the down payment, the less the monthly payment will be. However, saving for that large down payment takes time, and that means mortgage rates and the market can change as well. But there are still options for those that don’t have that 20% down they think that is required.
Consider Your Options
First time home buyers do have options for assistance if they aren’t able to come up with a large down payment. It’s important to look into all options in your area as they may require little or no money down when purchasing a home.
There are a few programs that can be helpful to first time home buyers:
- VA Loans are useful to those members that have served in the military. They are guaranteed by the US Department of Veterans Affairs and allow buyers to put nothing down when purchasing a home.
- USDA Loans are useful to those buyers that want to purchase in rural areas and are financed by the US Department of Agriculture.
- FHA Loans are great for first time home buyers because they allow for very small down payments, lower than even 5% for qualified buyers. Another reason FHA loans are good for first time home buyers can be used even if you don’t have perfect credit and are backed by the Federal Housing Administration.
Buying The Home
The most exciting part is actually looking at properties and making your dreams a reality. The task of buying a home can be extensive and quite a roller coaster so it’s always best to be as prepared as possible. Do your research, ask questions, and never feel rushed to make any decision.
Technology has advanced quite a bit so many people take to the internet when it comes to looking at homes, but a realtor is a great option, especially for those purchasing for the first time. Realtors often have relationships to sellers that can help secure your bid on the home versus if you were to try to purchase without one. They also can answer specific questions that may not come up until you are further into the process and actually setting up viewings.
Call Us Today
We know that being a first time home buyer comes with many choices and lots of ups and downs but the process itself can be truly rewarding and very educational as well. Don’t hesitate to reach out to North Star Mortgage in Jacksonville, FL today!