The first thing that buyers need to get straight is that: there is no best rate, there is only YOUR best rate. Buyers tend to call up brokers and banks thinking that rates are the same for everyone, but what they fail to understand is that a rate is contingent upon a person's credit rating, job stability (usually 2-3 years at one job is acceptable), and the location of the house that the buyer is interested in. If an individual is a first time buyer that does not mean they should necessarily opt for a first time home buyer program, or any other program that is offered in your state. Buying a home for the first time consumes resources and time. First time buyer programs tend be more inclined towards only qualified individuals. Lenders tend to agree upon little or no down payment or might limit fees that they are allowed to charge. Careful research will provide you results and a direction. Be sure to do your homework.
First time home buyers are in great demand by brokers because they have limited liabilities. But in order to qualify for a good deal or even qualify, the buyer must not have an exorbitantly high income as it would make them ineligible for the first time home buyer program since the philosophy behind such programs is to facilitate individuals with the highest need. First time home buyers need to buy the home as their primary residence, it is advisable not to go for the first time home buyer loan if the buyer has plans to rent out the place. First time buyers also have to ensure that the home they want to buy is in good condition and should not require major repairs.
A very high credit score may create problems for an individual as their application may not receive enough attention, while a score of 680 or less will increase their chances of getting a first time home mortgage. If an individual has a good credit, they can apply for a loan through the Federal Housing Administration (FHA) at a minimal down payment of 3.5%. In case of a low credit score, the buyer will have to save up for a decent sized down payment and even more if they wants to target a residence in a metropolitan city like the Big Apple. If the buyer cannot provide a reasonable down payment, they will have to bear huge monthly payments due to high interest rates and private mortgage insurance. Paying the bills on time, secures a buyer the right deal.
Doing research and some homework pays off big time. Using calculators available on the internet gives the buyer a direction, and further consultation with brokers and banks will give the buyer a fair idea of whether they should proceed with a first time home buyer mortgage or if they fare better renting. The buyer has to keep in mind that too many inquiries into their credit score by brokers and banks will have a negative impact on their score. So it's better to carefully choose and then consult the right broker or bank.
Author Resource:
Oliver Silverstones makes it easy for the first time buyer to find all the state and local first time buyer programs. He keeps a daily update of the lowest mortgage rates today , as well as providing great advice to avoid most first home buyer headaches.
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