First Time Home Buyer
FIRST TIME HOME BUYER PROGRAMS are a great way for those buying their first home to get better rates, make smaller down payments and buy more home.
To minimize closing costs, many first time home buyer programs include financial aid. This financial aid is also used in many cases to reduce the size of the down payment required.
When comparing the home loan quotes you receive from applying at this site, it is important to compare closing cost quotes. Closing costs may be around two percent of the total loan amount and are given by brokers only as Good Faith Estimates.
What this means in practice is that a conservative first time home buyer will assume that the closing costs will be slightly higher than the quote.
A common question first time home buyers have is "how much home can I buy?" The answer to this question depends on the buyers willingness to pay, credit history, and debt to income ratio, all of which are equally important.
The least familiar consideration of the three for first time home buyers is the debt to income ratio. This ratio is calculated by dividing your gross income by the amount you pay monthly for debts. If you have too much debt, lending institutions may advice you to finish paying off one of your vehicles before going forward with the loan process. There are no hard fast rules in many cases for debt to income ratios and a lenders consideration depends on many other factors.
Common First Time Home Buyer Questions:
1. What is the biggest benefit of becoming a home owner?
Home owners have many advantages. First of all, the livability of a home is often far better than that of apartment life. Second of all, interest paid on home loans can be deducted from your taxes for a huge savings. In addition, home owners build equity in their home with every monthly payment they make. When the home is eventually sold or passed on to another, this equity is yours - money in your hands, not in a land lords.2. How can I qualify for a first time home buyer program?
Qualifying will depend on the program and the lender. Each lending institution you speak with will have different requirements and some may not offer special programs at all. Applying through our site will connect you with quotes that will take into consideration any potential programs our lenders can find for you.3. I'm saving for a home loan, but rates are going up, what should I do?
There has hardly been a better time to become a home owner. Rates are still very low and owning your own home gives you an immediate means of creating equity and tax deductions every year. If you are saving for a larger home, invest now in a home you can live with and continue to save in the comfort of a more modest home.