Are you a first-time home buyer? Don’t know where to begin with and which first time homeowners loan to choose? Then continue reading as we provide you with complete details about:
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If you thought that living in the Golden State means saving tens of thousands of dollars for a down payment or perfect credit to become a homeowner, then you might want to think again. The good news is that the residents of California have numerous loan programs to achieve their dream of buying a home. Loan programs include but are not limited to:
Buying a home for the first time is easy with this loan program. It has a low down payment and a 30-year loan term. Requirements include:
CalPlus conventional loans include the same features as the CalHFA program; however it has more additional benefits, which helps first-time home buyers to finance closing costs with a zero-interest loan.
However, this loan is offered in conjunction with the CalHFA ZIP (Zero Interest Program). Therefore, you can pay for the closing cost using ZIP as the borrower. This further enables you to get a loan equal to 2 percent or three percent of the mortgage amount.
The interest rate is zero percent, while payments through the life of the loan program are deferred. Requirements include:
This is yet another way to finance your homeownership dream. Down payment is only 3.5 percent, and the credit score requirement is a minimum of 580. Hence, through this government loan program, even buyers with less than perfect credit can afford a home. To learn more about FHA loans, please click here…
No lender will qualify a potential home buyer if they have a high risk of default. Therefore, there is a criterion determining the eligibility for a loan in terms of who qualifies and what income is recognized by the lenders.
Mortgage lenders are likely to accept those borrowers who:
Here are some tips from our experts to make home-buying simple and avoid possible mistakes:
First things first, get a mortgage pre-approval. It gives you peace of mind and helps increase your chances of securing your dream home. A pre-approval letter:
When you get a pre-approval letter, make sure it is fully underwritten to avoid potential issues later. This letter assures the seller that your information is verified which further increases your chances of securing the purchase.
Make sure to start saving early. You can do this by slashing unnecessary or impulsive expenditures and creating a budget to help reach your target. This is much needed because studies show that it takes nearly 6.5 years for an average first-time home buyer in America to save for a 20 percent down payment. So, we say start your savings in advance. Cut back on expenses and put those funds in a brokerage or high-yield savings account.
A good credit score can provide more financing choices and lower interest rates or premiums. So, if you want that, focus on strengthening your credit from today. Lenders want to see stable credit. Therefore, avoid racking up credit card debt or opening new accounts. Review your credit reports for inaccuracies, errors, or wrong information. Get them fixed to restore your credit and ensure you have the ideal score to qualify for the loan program.
If you are vested in buying your first home, avoid incurring additional liabilities like purchasing a car or taking out a personal loan. Stay focused. Don’t be tempted. All of this can wait till you become a first-time home buyer.
Work with a team that has the experience and expertise in working with first-time home buyers and can provide you with quality guidance and step-by-step assistance in achieving your goal.
Though it is possible to buy a home solo, it is not recommended when it is your first time. Work with a seasoned local real estate agent who can help vet neighborhoods, schedule home tours, negotiate, draw up contracts, etc.
So, if you wish to enjoy a hassle-free home buying process, contact us. We can provide you quality assistance from start to finish. In addition to many first-time home buyer loan programs there are also numerous down payment assistance programs. We can help you navigate through them too. These can significantly minimize the up-front cost of purchasing a home.
Buying your first home during the holiday season is a unique and exciting experience. It’s not just a season of giving, but also a chance to begin a new chapter in life. With the right tools and strategies, first-time homebuyers can turn this dream into reality during this slower, buyer-friendly period. Hence, helping first-time buyers […]
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The choice between seller credits and price reductions can significantly impact both buyers and sellers in the realm of real estate transactions. Hence, understanding why seller credits can make more sense than price reductions can provide valuable insights into maximizing savings and financial flexibility during a home purchase. Maximize Your Savings at Closing Seller credits
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FHA loans offer a range of benefits for homebuyers. These advantages can help you save up to $500 per month with FHA home loans. Here, we’ll explore how FHA loans can be a great choice for you. Better Interest Rates One major benefit of FHA loans is the better interest rates they offer. Traditional loans
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Deciding between a higher down payment or higher monthly payment is crucial when buying a home. Both options have unique advantages and disadvantages. Thus, here’s a closer look at how each choice can impact your financial situation and homeownership experience. Higher down payment eliminates mortgage insurance A higher down payment often means avoiding mortgage insurance.
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