If you’re excited about buying your first home and are looking for information that will help you take action to get started, you’ve come to the right place! Here are some essential things you need to know as a first time home buyer.
📊 Credit Score to Buy a House
To secure a mortgage loan, you’ll want the highest credit score possible, though it is possible to get a loan with a lower credit score. Keep in mind that with a lower credit score, you’ll have a higher interest rate and may be asked to put down a larger down payment.
Most traditional lenders want a credit score of 620 or higher, but the Federal Housing Administration requires a score of at least 580. It’s worth your time to work on getting your credit score as high as possible to get a lower interest rate and better mortgage terms.
📄 First Time Buyer Loan
As a first time home buyer, you’re in a perfect position to get assistance when buying a Florida home. Depending on your income and other factors, you may qualify for a select loan option that comes with a lower down payment.
🤔 Mortgage Loan Differences
Knowing the language of mortgage loans can keep confusion at bay and make you more comfortable when seeking answers to questions. No one loan fits every situation, so don’t be afraid to shop around for the one that makes sense for your needs.
A fixed rate loan usually comes with a term of 15 to 30 years and has an interest rate that remains the same for the duration of the loan. This type of loan is perfect for homeowners who don’t plan to sell their home within a few years or who need a predictable monthly payment.
A flexible interest loan begins with a set number of years at a specific interest rate that then changes to an interest rate that varies depending on current real estate market trends. This type of loan is suitable for those who plan to sell their home before the initial term is over or who don’t mind a monthly payment that fluctuates.
A home buyer secures a traditional mortgage loan through banks, credit unions, and other lenders. Other options for a mortgage loan include the Federal Housing Administration, the U.S. Department of Veterans Affairs (VA), and the United States Department of Agriculture (USDA).
🧮 Home Affordability Calculator
Buying a home is exciting, and it’s easy to get carried away with a long wish list that adds dollar signs to the cost of the property. Most first time home buyers need to stay within a budget that requires a bit of compromise on that wish list, but how do you know how much home you can afford?
👩💼 Hiring a Real Estate Agent
Did you know that you can hire us to represent you when buying a home without it costing you a dime in commission? That’s right! The seller pays all real estate agent commissions.
As your real estate agent team, we’ll help narrow down house choices to save you time when searching, and because we have access to the newest listings, we are always on the lookout for newly listed homes that match your needs. We make sure all paperwork is completed correctly, get answers to all your questions, and handle any negotiations on your behalf.
✔ Mortgage Loan Pre-Approval
Once you have an idea of how much house you can afford, you’ll want to contact a mortgage lender to see if you qualify for a loan. A pre-qualification gives you an estimate of a possible loan amount, and nothing is needed to verify the information you supply, but this does not guarantee a loan.
🔎 Searching for a Home
We make it easy to search for homes that match your wish list. Search through our locations that are sorted by price range and features.
🏘 Sarasota County Homes by Price Range