First Time Home Buyer Loans
First time home buyer loans are not as hard or painful to get as they once were!
The lower your credit score, the higher interest rate you will have to pay. Your credit score is a calculation that banks make which factors in your outstanding debt, late payments, collection actions, the number and types of accounts you have and the age of the accounts. This information is applied to a formula and the result is a number that represents your "score".
In fact, many lenders offer special incentives for first time buyers. First time home loans can be secured through local lenders or online. Visit our section on online mortgage lenders and see how easy it is to get free mortgage estimates online.
Of course, if you are getting a loan for the first time, you will need to fill out a lot of paperwork and it's best to make sure your credit report is up to date with no mistakes as your credit score will effect the interest rate that will be offered to you for your loan.
Buying a home for the first time can be a confusing and stressful, but exciting event. In order to make it easier on yourself, it’s best to figure out how much house you can afford to begin with so you know what range to look in. Usually, first time home buyers will be able to secure loans that have a monthly payment of 29% of your gross monthly income or less. Your gross income is your total income before taxes, insurance and other tings are deducted from your check. Needless to say, the lower the interest rate you can secure on your loan, the more house you can buy (another reason why it is so important for first time buyers to have good credit!).
Finally, be prepared to fill out lots of paperwork and submit a ton of verifying documents. First time buyers, especially are subjected to this. Start keeping all your paystubs, bank statements and any documents supporting sale of stock, CD's mutual funds and the like months in advance of applying for a loan. If you keep this stuff well organized it will help alleviate a lot of stress during the buying and loan application period as you won't have to spend hours digging around and trying to get copies.