First Time Home Buyers Guide From Application to Close

I am going to give you a first time home buyers guide so you can understand the total process. You have determined that you qualify and how much home you can afford so what is the process?

First, being a first time home buyer it is recommended that you obtain the services of a good Realtor in your area. You can go online and find an agent that specializes in acting as a buyers agent. They will handle all the contracts and negotiations with the seller. Today there are a lot of foreclosed properties on the market and dealing with a bank is best left to a trained individual.

There are also tax advantages from both the state and the federal government. Also, check with a for the most up to date information.

The Loan Application

This is the initial application you make when applying for a loan. Do not give the Loan Officer information that cannot be verified. It is very important that you give them accurate information.

Documents you will need.

1. Last 2 years of your W2’s
2. Last 30 days pay stubs
3. Last 3 Months on bank statements.
4. 2 Years Tax Returns if self-employed.

There will be other documents required, but this is the minimum to take to the loan application. You can make copies of these so you do not need to take originals. Make sure they are good copies.

Go over the loan application and make sure it is correct. Such things as spelling of name, Social Security number, date of birth, must be correct. Check them on the application. In giving you this first time home buyer’s guide, I want you to remember it is a guide, not the law. So expect changes. Please ask me your questions, I am here to help. There are no dumb questions, so ask. The guidelines are changing monthly so check back often.

Types of Mortgage Loans

When we speak of types of mortgage loans we are referring to either Government or Conventional. Some people get confused with the terms of fixed or adjustable. Let’s discuss the basic difference between Government and Conventional, and we will also discuss how to get the best-fixed rate mortgage.

FHA and VA Loans

FHA and VA loans have there requirements set by either the Federal Housing Administration or the Veterans’ Administration. Both are very similar and generally the VA loans follow the guidelines of the Federal Housing Administration. The basic difference is in the down payment. The VA has no down payment while the FHA has a 3.5% down payment requirement.
The other major difference is in mortgage insurance. Both FHA and VA have up front mortgage insurance. This can be financed into the loan and generally is between 1.5% and 3%.

Although these government loans have upfront mortgage insurance the monthly payment is generally lower than conventional when your down payment is less than 20%.

The last item in FHA loans is loan limit. Each county in the US has a different loan amount the government is willing to lend. To find out your county limit loan click here.

Conventional Mortgage

The basic difference between the Conventional and Government FHA/VA mortgage is in the down payment. The advantage of the conventional loan is that over 20% down it has no mortgage insurance.
The big difference is again Credit. If your credit score is below 720, your rate is going to be higher. Please visit our page on credit. Click here.

First time home buyer programs are FHA government loans. But let’s start slow. Remember this is the largest financial decision you will make. The purchase of a home. One step at a time.

I have seen too many young people make very bad decisions and it will reflect on their credit for many years. Please take a few minutes to read what I have to say. It will pay off in the long run.

We are going to show you the many steps to qualify for first time home buyer programs and the amount you will qualify for. Don’t try to get more home than is recommended.

Follow my simple guide and you can be 95% sure you will be granted a FHA home loan.

I have been in the business for over 15 years, managed several mortgage brokers, and know what the underwriters are looking for. You say what is an underwriter? Well, they are the individuals that will give the final loan approval. They determine if your qualifications meet the FHA government guidelines.

These guidelines are what we are going to address.

Let me say again with the steps I am giving you, you can be 95% sure of loan approval, but only the underwriter can approve the loan.

I know you don’t want to read a lot so let’s get started.

First we are going to gather the information needed, then, we will fill in the qualification chart. It will tell you how much house you can afford and if a lender will consider you.

Remember that all lenders have different guidelines so we will concentrate on an FHA mortgage. This is a loan guaranteed by the government.

Some basics. You must have the following.

1. Checking account for 3 months

2. A source of income

If you don’t have these stop here and come back when you do.

Sorry for being so direct, but as I said we are taking this one step at a time.