Mortgages for first time homebuyers - How do I get a mortgage as a first time homebuyer? Where do I start when I am looking to buy my first home? How do I find a mortgage company? Should I use a mortgage broker or my current bank? How much of a home can I afford? How much will my mortgage payment be? Are there any programs specific to first time home buyers? Do I need money for a down payment? Can I buy a home with zero money down and zero money out of my pocket? These are just a few of the everyday questions that consumers just like you ask everyday. Call 888-418-4467 or email dave@gofirstsecurity.com to find out the answers to these questions and anything else that you can think of when you are looking to buy your first home. First time home-buyers are an area of specialty for us.As a first time homebuyer, some lenders will require proof of rental payment history in order to approve your mortgage. If you are renting from a private individual rather than a property management company, rental payment history shown in the form of cancelled rent checks may be required for your first home loan's approval, although not all lenders require this. Your mortgage professional will help you find a lender whose documentation requirements match your lifestyle's situation. Some lenders don't even need to know your source of income on the loan application, streamlining the approval process when the borrower has unsteady employment history. New loan programs are helping first time homebuyers everyday get past situations which would have been viewed as obstacles in the past.
The biggest thing is to not be afraid to ask these questions and many more. Everyone has to go through this process at some point, and will inevitably do it again. So the best thing to do is ask questions the first time around, so that you are comfortable with how the process works. It will make the whole process much easier for you both now and the next time you decide to buy a home.
We can also recommend a highly qualified Realtor to assist you in the purchase of your new home. While it is always important to have a knowledgeable Realtor on your side, it is most important on the purchase of your first home. It is easy to get caught up in the process, and not examine each of the homes you view as closely as you should. A Realtor who knows the market will know what to look for, and may be able to point out pro's and con's to each home you may have overlooked. They can also be a level headed negotiator on your behalf, when you are ready to make an offer on your new home.
100% Financing - Today’s lending market is far more lenient with home loan financing than in times past. The ability to borrower up to 100% of the homes value would have been un-thought of 20 years ago.
If you are looking for 100% financing but do not qualify for it, there are down payment assistance programs available that can help you purchase your new home. Ask your mortgage professional in North Olmsted, about such programs that may be available to you. These programs are available to people in every credit situation, and are a great tool to get you in your dream home.
For example: FHA requires that you put 3% down to qualify for an FHA mortgage. The grant programs will give you the 3%, as long as the sellers agree to it, and it is written in the offer to purchase. The money does not get paid back from your funds ever, thus achieving 100% financing. for you. This is just one example of how a down payment assistance program can work for you.
Since real estate values have increased at a much faster pace in recent years, many home buyers find it difficult to save for a down payment. As a result, 100% financing has become ever more popular. Although more banks are offering an array of 100% financing loan products, home buyers should be realistic and expect to pay higher interest rates on these types of "No Money Down" mortgages.
When you are purchasing a home with 100% financing it is an option to get the home sellers to pay your closing costs. This can make owning a new home a very low cost process.
If possible, it is recommended to split the 100% financing into 80/20 to avoid PMI on the mortgage. The borrower should be aware that the PMI you pay every month is not tax deductible.
Usually people will go with 100% refinancing in order to be able to take as uch cash out that is needed. There is also 80/20 programs that may have lower rates
The 80/20 combo is the most popular 100% loan available although there are a few lenders who are giving better pricing with the 70/30 and 75/25 combos.
In 2005, 43% of first time home buyers used 100% financing programs.
100% financing can be obtained by financing one loan at 100% of the value of the home or by dividing the loan up into two mortgages and financing an 80% 1st mortgage and a 20% 2nd mortgage, which is called an 80/20. An 80/20 is becoming a very popular financing option for people looking to avoid mortgage insurance.
There are even programs that will allow you to finance up to 103% of the purchase price of the new home, the additional 3% is used to help pay for closing costs.
When you are purchasing a home with 100% financing it is an option to get the home sellers to pay your closing costs. This can make owning a new home a very low cost process. Make sure your realtor knows that you want seller paid closing costs when you write your offer to purchase.
In addition to the 100% programs for your primary residence there are now programs that will allow you to purchase a non owner occupied or investment property to 100%.
There are certain qualifications to get 100% financing that your mortgage broker can help you figure out. They are very lenient and there are tons of programs available. If you're even considering purchasing a home, contact your broker now dave@gofirstsecurity.com.
