If you're like most first-time buyers, you need a home loan, or mortgage, to finance your first property purchase. However, if you've never applied for a home loan before, the whole process can seem daunting and overly complicated. Don't worry. It's actually much more straightforward than it looks! Here's what you should know about first home mortgages and why it's easier to apply for a home loan than it seems.
You Don't Need a Certain Down Payment
I'm not sure why so many people believe that they need to make a 20% minimum down payment on a property, but it's simply not true. Sure, you might secure lower interest rates if you make a higher down payment, but you can still qualify for a home loan with as little as a 3% down payment.
Down Payment Assistance Is Available
Struggling to save up for a down payment? Don't worry! This is common, and there are various down payment assistance programs on offer to help you out. I'm familiar with all the home incentive and down payment assistance products available across the Greensboro, Winston-Salem area, and I can advise you on everything, from your eligibility right through to making your initial application.
Shopping Around May Save You Money
When you're looking for a first home mortgage, you should do two things: do your research and speak with a professional loan officer. Shopping around is the only way to ensure that you understand all the loan options available and find the one best suited to your unique circumstances. And, by working with an experienced loan officer like me, you'll get all the support you need to weigh up the pros and cons of the different options.
Support Exists for Low-Income Buyers
Even if you're a low-to-moderate-income buyer, it's still absolutely possible for you to secure a home loan. There are numerous support programs available, including High Point's City-Wide Homebuyer Assistance Program and USDA loans. Whatever your financial situation, you deserve a shot at joining the property ladder, and I'm here to help you take that first step.
Bad Credit Isn't Fatal
Seriously – a less than ideal credit rating is no reason to give up on finding a home loan. Although it's true that a better credit score makes it easier to secure a mortgage, there are financing options out there for every first-time buyer. Government-insured loans such as Federal Housing Administration (FDA) loans only require minimal down payments, and they are open to applicants with pretty low credit scores. I can talk you through all the options available in your specific circumstances.
Some Cities Have Their Own Incentive Schemes
Some cities, such as Greensboro, offer down payment assistance to first-time buyers who want to purchase a home within the city limits. These incentive schemes encourage new homeowners to get on the property ladder – the Housing Connect Greensboro 10K Down Payment Assistance Program, for example, pays up to $10,000 towards closing costs and your down payment!
Ready to Apply for Your First Home Mortgage?
Don't let the first home mortgage application process stress you out – instead, let me help you secure your dream home! With over 30 years' experience in personal finance and home loans, I'm perfectly placed to support you through each step of the mortgage application process, from shopping around for the best deal to signing the final contract. To find out more about home loans and my service offerings, contact Mortgages by Jill today.