Buying your first house is a big commitment, but it’s the best way to invest in your future. Though the process seems simple on the surface—find a house, get a good first-time buyers loan, move into your new home—it’s far more complicated than you might think. This leaves many first-time homebuyers with dozens of questions about navigating the loan application process. Here are a few of the most commonly asked questions to help you on your journey to homeownership.
How Soon Should I Apply for a First-Time Buyers Loan?
It’s a common misconception that you should wait to apply for your loan until you have a house in mind. In fact, doing so can cause you to end up losing the house you want. Instead, try to apply for your first-time buyers loan as soon as you’re ready to start looking at properties. Your mortgage lender will be able to pre-approve your application so you can better understand how much house you can reasonably afford.
Do I Have to Make the Full 20 Percent Down Payment?
Though most lenders prefer that you make a down payment of at least 20 percent of the home’s purchase price to secure the loan, you may not have to. There are first-time buyers loans that allow you to get into a great house without depleting your savings. However, the more you can put down on your home, the better your interest rate will be and the more money you’ll save in the long run. You may also be able to qualify for first-time buyers’ programs that help you cover the down payment if your savings aren’t great.
Does My Credit Score Really Matter?
Believe it or not, your credit score is a major deciding factor for lenders. When you have a high score, it shows them that you’re financially responsible and don’t have tons of outstanding debt. When it’s low, lenders will be less confident working with you. However, a bad credit score doesn’t necessarily mean you won’t be able to buy a house. Check your score and do what you can to increase it before you apply for a loan. Then, work with your mortgage broker to find the best first-time buyers loan for your needs.
Apply Now
If you’re ready to start looking at homes, don’t wait. Apply for your first-time buyers loan online and get into the home of your dreams quickly.
