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.

๐Ÿ“Š 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.

credit report with score

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.

ACTION – Get a free copy of your credit reports from Experian, TransUnion, and Equifax using the official Annual Credit Report website. Check for errors and report any immediately because the dispute process can take time.

๐Ÿ“„ 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.

ACTION: Visit the HUD.gov website to see what kind of assistance you may receive. Give us a call at 941-313-1234 to see if there are other loan options we know about that could help you become a homeowner for the first time!

๐Ÿค” 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.

Mortgage Loan Application with Key on House Keychain

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.

Percentages - Interest Rates

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).

ACTION: Review information from the official websites for the FHA, VA, and USDA to see if you qualify for their loan options. Begin to gather documents like tax records, pay stubs, and references that are needed when you apply for a loan.

๐Ÿงฎ 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?

ACTION: Use our free home mortgage calculator to see how much money you can afford to spend on a house. You’ll input a target price, expected down payment, interest rate, and term of the loan to reach a monthly mortgage cost.

๐Ÿ‘ฉโ€๐Ÿ’ผ 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.

Surprised Couple Looking at Laptop Screen

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.

Give Brock Realty a call today at 941-313-1234 to discuss how we can help you become a homeowner.

โœ” 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.

ACTION: We suggest that you go forward with getting a mortgage loan pre-approval letter that shows a seller you’re serious about buying a home when you make an offer. This pre-approval will give you a real target price range that helps when you’re searching for homes, and you will need to supply financial verifications to be approved. A pre-approval is good for up to 90 days.

SUGGESTED: How to Buy a House with Cash

๐Ÿ”Ž 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.

๐Ÿ˜ Sarasota County Homes by Price Range

ACTION: Sign up for our free e-mail alerts! All you have to do is create a search, save it, and we’ll let you know when a new home hits the local inventory that you may want to see. These e-mail alerts give you an advantage over other buyers who aren’t watching for new listings.

โžก๏ธ Conclusion

First Time Home Buyer InfoGraphic
Click Image to Save!
First Time Home Buyer Things to Know
Article Name
First Time Home Buyer Things to Know
We're giving you actionable steps that you can take today when you're trying to buy your first home. Check out these first time home buyer things to know!
Publisher Name
Brock Realty Inc
Publisher Logo
View All Buying Posts