At City Creek Mortgage, we’re here to help first-time homebuyers looking to enter the market in smart ways. From helping debunk common myths that often face first-timers to helping them find the programs that fit their situation, our mortgage experts are here to help if you’re new to the market.
Some of what goes into being a good first-time homebuyer just speaks generally to doing good research, plus being both diligent and flexible during the process. Let’s look at some of the top tips we give our first-time homebuyers.
Depending on several factors, including your credit score, income, locality and even your spousal or children situation, you might qualify for a number of different loan programs that are either designed specifically for first-time buyers or are very beneficial to them. One good example here is the FHA loan, which is backed by the Federal Housing Administration – it allows people who don’t have a full 20 percent available to use as a down payment to get financed with far less money down.
There are other programs that might benefit first time homebuyers as well and you should consider all of these. If you are able to qualify for any of them, they can help make your expenses lower.
To whatever degree you feel comfortable, prepare yourself financially for this process. Many websites have basic financial snapshot worksheets you can complete either on the computer or by hand. Areas you should be looking closely at include your credit score, your income, and your current debt situation compared to your overall credit limit.
Be Ready to Compromise
When preparing for a home search, you should be discussing with your spouse and any other family members the qualities you need in a home and the qualities you desire – and in the latter case, you should be willing to have at least some flexibility. If you have children, multiple bedrooms will be an absolute must that you can’t sacrifice; on the other hand, a two-car family might be able to let go of that dream of a three-car garage if it’s simply outside your price range. Be realistic and flexible on the amenities and qualities you’re looking for.
There are a number of misconceptions out there about down payments, and perhaps the largest is that you absolutely must have 20 percent down to get approved for any loan. Average down payments are far lower than this in reality, and there are some programs that require no down payment whatsoever if you qualify. Once again, do your research here before simply assuming you can’t enter the market without 20 percent up front.
For more tips for first-time homebuyers, or to learn about any of our mortgage loan services, speak to the pros at City Creek Mortgage today.