A Real Estate Agent Is the Best for New Home Buyers
As a first time home buyer, there are loan programs that can help buyers that are looking for their first home, get an affordable payment. These loans are handled through the FHA loan program normally, but conventional lenders offer some special government guaranteed loan programs when they are available. They may have lower interest rates or a portion of the loan might be guaranteed. PMI or Private Mortgage Insurance is a program that helps those that have a down payment under 20%. It is a monthly premium that will be included in your monthly payment.
There are first time buyer grants available for folks planning to buy their new home. Found here at this site is more information on buying your first home. A real estate agent will be able to inform you of the programs that are currently available, including details of any first time home buyer tax incentives. There has never been a better time to take advantage and buy a home. You will need to qualify based on your income for the monthly payment. In addition to getting your income verified, the bank will cross-reference to make sure you have filed taxes for the past two years. You might need copies of your paycheck stub.
When you are buying a home, making enough money is only part of the battle. The real estate agent will arrange to have the home valued once the preliminary qualifying has been completed. Because of problem loans, appraisals are stricter and income levels and verifying them can make loan approvals harder to get. This is something you should be prepared for and do not plan on closing until a final approval is received and found out the home is worth what you offered.
With lower market values on homes, the appraisal can determine the outcome once you have your income and paycheck verified. You will need to be prepared to pay for the appraisal, credit report, and your first years homeowners policy. Your real estate agent can help you find an insurance agent to write the homeowners insurance policy, but most people use their present automobile insurance agent. You will need to have a certificate of insurance or an insurance binder prior to closing.
A title search and insurance policy will be prepared by the title company that will be helping with your loan closing. You will need to pay for this paperwork, but it insures you and the bank that is making the mortgage, that you will get clear title at closing. You might have two closings to purchase your home. The first one will be at your bank or Mortgage Company and the second one might be at the title company. Sometimes, they are done together and can be confusing for some, but your real estate agent might be present to help you.
For a first time home buyer, you can save a lot of money on your new home purchase if you shop carefully because market prices are the lowest in many years. You have learned the basics about buying a home, but if you are unsure about paperwork for your home loan, your favorite bank, or Mortgage Company will tell you what is required, it is of your best interest to hire an agent.
firstbuyerprograms.com covers first time buyer grants that you can avail of. Click here to see the site.
First Buyer Programs