First Time Home Buyers and First Time Home Buyer Programs
First time home buyers will go through several states of angst as they eagerly enter into the real estate marketplace. Afterall, buying a home is the largest purchase a person will make. Most buyers will spend countless hours researching the process including the pros and cons of types of available loans, buying power, types of real estate available within their price range, etc.
Before shopping for a home, buyers are recommended to gather their information i.e. proof of income (pay stubs), down payment amount, bank statements, tax returns etc. and bring that documentation to your loan counselor. Only a lender or broker will be able to provide you the correct dollar amount for which you may be qualified. They will run your credit scores, calculate your monthly income, and in most cases provide a list of additional documents you will eventually need prior to eventually receiving a final loan approval. If a home buyer is in California and does not enough money saved for a down payment, They may take advantage of the Zero Down California™ program. This program is 100 percent financing or true zero down program.
Most real estate agents will require first time home buyers to already have a pre-approval letter prior to looking for a home and a pre-approval letter is almost always required prior to submitting an offer. A pre-approval letter is different from a pre-qualification. Just because you prequalify for a loan doesn’t mean that you will get one. Pre-qualification is the amount of loan a home buyer may qualify based upon generic information provided to a lender (can be the same as filling out a form and receiving an automated response). A pre-approval letter is issued when documentation is submitted to a lender an credit, assets, and income is verified. A pre-approval letter is much stronger although financing is never guaranteed until the loan is funded.
When a pre-approval letter is in hand, the first time home buyer is now ready to find a qualified real estate agent. A good agent will interview you and determine your needs and wants in a new home. Since they deal with home sales on a daily basis, a good real estate agent will provide you with realistic expectations of the home type and area for which you qualify.
It may take a couple of weekends or even longer to find a dream home within your budget, but when a first time home buyer has taken the steps to get a pre-approval letter and obtain a firm dollar amount for shopping, the process will go smoother.
Please complete the form on the right for a quick pre-approval for your home purchase loan. A loan counselor will review your information and contact you regarding the programs you appear to qualify. If you have already found a property, please note that in the comments section and your inquiry will be expedited.