Buying your first home can be scary and overwhelming, mostly because it's hard to get a straight answer about what you can expect. Here are some quick tips to ease your anxiety and help you decide if it's time to stop wasting your money on rent and start building some equity in your own home:
1. FHA loans are not just for first time home buyers.
An FHA loan requires a 3.5% down payment rather than the traditional 5%, 10% or 20% down payment with conventional loans. In fact PMI rates are low enough right now that FHA is a competitive option when searching for the best mortgage.
2. No doesn't mean no forever.
Remember if you don't qualify for a loan right away ask your lender what you can do to get into a home within the next 3-6 months. After looking at your income and FICO credit report, lenders will be able to tell you detailed tips about you can do to improve your score as well as get you into a home.
3. You don't need perfect credit to qualify for a home loan. A 620 Credit Score and an annual income of $62,500 or under could get you an MFA loan which gives you down payment assistance. Which means you would only need $500 for earnest money to place an offer on a home. There are other expenses that go into buying a home for instance home inspections. However these can be paid a number of ways. In most cases the buyer can pay at the time of the inspection or at closing (30 days later). In some cases we can even negotiate to have the sellers pay for it.
Whether it's a new home or an older home, remember it's not that scary if you have a qualified Realtor. Call me and lets find your first home.
