First Time Homebuyer Loan Programs
So you're thinking about buying a house for the first time? Great! It's normal to have questions and concerns as you embark on this journey. After all, a home may be the largest purchase you ever make. You may have concerns about your budget or savings. You might be unsure if you can even qualify because of your credit or income. However, the home buying process can be easier than you think .
Benefits and Eligibility
First Time Homebuyers (as defined by the Housing and Urban Development (HUD)) who meet certain criteria, are eligible for help from state programs, tax breaks, and federally backed loans.
The guidelines imposed by the U.S. Department of Housing and Urban Development for a FTHB are as follows:
- The individual has not owned a principal residence in the last 3 years
- A single parent who has only owned a home with a former spouse
- A displaced homemaker who has only owned with a spouse
- An individual who has only owned a principal residence that is not attached to a permanent foundation
Individiuals must also meet the qualifications of the loan program they intend to acquire, including but not limited to credit score, employment history, and income.
The Loan Process
The first step in the Loan Process is to submit an application to a mortgage company. This should be done before you start looking for a home with a real estate agent. It is the only way to receive a pre approval letter and to get an idea how much you can afford to spend on a home. It is important to know this information before you start shopping. When you find a home within your budget, your real estate agent will assist you with the paperwork to submit an offer to the seller or seller's agent.
If the seller accepts the offer, you are considered "Under Contract." Once under contract, you work together with your mortgage company to get your loan through underwriting. This involves submitting documents and paperwork. You can think of this a deep-dive into your finances; the underwriter is assessing the risk of lending you the money to purchase your home. Once the loan passes through underwriting and the appraisal and inspection have been completed, you will receive Closing Disclosures and your closing will be scheduled!
When you get to closing day, you will sign paperwork with the title company, pay any necessary closing costs, and receive the keys to your first home.
Check Your Eligibility for a Home Loan
Affinity Mortgage Brokers is a premier mortgage broker headquartered in Colorado Springs and serving 8 states across the nation. We believe that relationships are always on the line and as such, we strive to deliver a superior experience every time.
We are veteran owned with 100+ years combined experience in the mortgage industry.
Affinity Mortgage Brokers
NMLS ID# 1062246
www.nmlsconsumeraccess.org
