Buying a home for the first time is exciting. There are many programs out there that make homeownership more accessible for first time buyers. You might want to take advantage of one of these programs. The following are six things you shouldn't assume about first time home buyer programs.
It's always easy to buy a first home through a grant or first time home buyer program.
While first time home buyers often can take advantage of programs that make it easier to get financing, applicants still need to meet certain requirements to be approved for these programs. You'll need to meet certain credit score and down payment requirements in order to benefit from a first time home buyer program.
You should take out the mortgage loan with the lowest interest rate.
Carefully research your options before assuming that the mortgage loan with the lowest interest rate is the best option. Some home loans might have lower interest rates but include a variety of fees that make them more expensive than loans with higher interest rates.
You shouldn't allow multiple inquiries on your credit report.
Most first time home buyers know that too many inquiries on their credit report could be bad for their credit score. However, numerous inquiries within a short period of time when you're looking for a home loan shouldn't hurt your score too much.
It's important to compare a few options by applying with numerous mortgage lenders despite the fact that this can result in multiple credit inquiries.
You can use a credit card to make your down payment.
Unfortunately, lenders don't typically allow first time home buyers to use credit cards to make their down payment on their home loan. Putting your down payment on your credit card will add to your overall debt load, so lenders generally won't allow credit card payments.
You can't buy your first home if you're still paying off a student loan.
While mortgage lenders won't want to lend money to consumers with too much debt, this doesn't mean that you can't buy a home if you're still paying off your school loans.
You should be able to find a first time home buyer program through which you can take out a mortgage to buy a home even while you're paying off your student loan as long as you're up to date on your student loan payments.
It doesn't matter which first time home buyer program you buy your home through.
Carefully compare the different first time home buyer programs that are available to you. These programs can vary widely in terms of how much borrowers can borrow and what the repayment terms of loans are. Make sure you do your research to find the best option for your unique financial situation.
For more information on first-time home buyer programs, contact a professional near you.
Share6 June 2023
When I began my first business selling sports equipment locally, I knew the sports-world well, and I knew how to run a business. One thing I did not know a lot about was the financial world. I had never applied for a loan in my life other than when I financed my car with the dealership in-house financing. My first application at a large bank was denied. I began looking into my other options, and I found that there were more lenders for new businesses than I realized. I applied at local credit unions, local banks, and other business lending services. I was able to secure more funding than I even expected, and my credit is just average. I created this blog to help other new business owners realize that there is funding out there. You just have to find it and apply! Don't give up on your dream.