“Here in this write-up, we take a look some of the things that you need to consider before availing first time home buyer loans.”
You may have had enough with rentals and roommates. Now as you plan to buy the most prized possession in your life, it is exciting as well as would give you some nervous moments at the same time. Mortgage rates are at historic low and this is the right time for you to think of buying a home. If you meet all the eligibility criteria, you should be able to avail first time home buyer loans without any hiccups.
But all said and done, it is one of the most important decisions that you would be making in your life. This is where you need to work with lending specialists such as Clear Lending (https://www.clearlending.com) who shall guide you in availing the best loan programs at the most attractive rates. Here, we take a look at some of the important things that you need to consider before availing first time home buyer loans.
# Know Your Credit Ratings
Poor credit or your inability to make considerable down payment can ruin your home ownership plans. If you have poor credit score or your income is at the lower end of the spectrum, you might not qualify for all home loan programs. Thus, it is crucial for you to know your creditworthiness even prior to getting in touch with loan consultants.
# Consider Conventional Loan Alternatives
It goes without saying that conventional loans are the easiest loans that you can avail to build your home. But is it your best option? There are other loan programs that offer you more attractive rates and borrowing options, provided you meet the eligibility criteria. Some of your options include –
- USDA Loan – The United States Department of Agriculture Rural Loan program, popularly known as USDA, is aimed at offering people with low income and including those with no other means to avail home mortgage with affordable loans. It is available to people who reside in rural areas and can offer up to 100% financing.
- FHA Loan – For people with bad credit history, this is often the only loan program they are eligible for. It is aimed at people who have low debt to income ratio avail loans. One can qualify for a loan with 3.5% down payment with a credit score of 580 and above. Others who have a credit score between 530 and 579 can avail these loans with 10% down payment.
- VA Loan – The Veterans Administration loan popularly known as VA loan is available to veterans, active duty personnel and their families (in some cases). This home mortgage plan allows 100% financing of the property at highly attractive interest rates. VA loans can easily be availed with credit scores which are as low as 530.
# Know What You Can Afford
When you want to avail first time home buyer loans, what you borrow shouldn’t be based on what you are eligible for and rather on what you can afford to repay without having to compromise on the necessities and lifestyle. Don’t borrow an amount that would put you through considerable financial strain.
When you work with loan experts such as Clear Lending (https://www.clearlending.com), they will help you choose the right loan for your needs. They have experience with all kinds of home mortgage programs and hence, offer you the right advice.
About Author: Joan Gallardo, with his 18+ years of experience as a Senior Loan Officer, advice his clients to seek first time home buyer loans. He regularly writes about first time home buyer programs in Houston.
