When you’re in the market for a new home, you can be overwhelmed by the process. This is especially so if you’re a first time home buyer.
You may not know what to do, where to go and who talk to so that the entire experience is a success. The goal here is to empower you with the necessary information and resources that will give you the financial help and confidence you need to make the dream of buying and owning your first home a reality.
The most challenging issue facing first time home buyers is getting enough money together for a down payment and closing costs.
First time home buyers, as you may already understand, means someone who has never owned a home before and are currently renting a place to live. How are you able to pay your rent and save money for a down payment concurrently?
For the majority of people, this is nearly impossible. This is when first time home buyer programs come in handy.
Before you start looking at homes, you'll need to have some estimate of how much you can truly afford to spend each month on your new home.
It can save you a lot time and heartache by making sure you are looking in the correct price range to start with. (Calculators).
With a long list of charges at settlement, it's important to know what the closing costs on a house are before you start to buy.
The quick answer is 1.5% - 4% of the purchase price of the house. The biggest determining factor as to whether you get to pay the 1.5% or closer to the 4% is your credit and your knowledge of the loan process.
How would you like free money to put down as a down payment or handle closing costs for the acquisition of your first home? If you’ve answered yes, then you’ll be glad to know that you can get this money.
There are all kinds of free money to help the first-time home buyer pay for a down payment or closing costs.
The Yield Spread Premium is a payment by the lender to your mortgage broker for having the consumer agree to a higher interest rate then what is known as par.
Par is the interest rate provided by the lender to the mortgage broker for zero cost. Meaning the broker will receive no additional (hidden) payment from the lender for the interest rate being offered to you.
Essentially, you have to determine: Is the cost and time it takes to refinance my home mortgage going to be worth it for the total sum of money I will save? One thing is for sure, if you have the right situation you can definitely benefit from refinancing your home mortgage loan.
The optimal way to figure out whether you are in that desired position is by speaking to lenders and begin comparing interest rates.
It’s of no surprise that the lending industry has tightened the standards that led to the mortgage meltdown of the last several years. Today, first time home buyer loans are trickier to obtain.
However, there’s help for any first time home buyer who wants to get their first mortgage.
PMI is insurance lenders require from most home buyers who need loans which are more than 80 percent of their new homes value.