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The Best First-Time Home Buying Guide

  • ///  Last Updated: May 31, 2023

So, you’re thinking of buying a home for the first time. No, it’s not an easy process for the average person. I mean, if you (or your family) are not financially advantaged or carry juice in the right circles, things can be somewhat problematic. We believe that the best first-time home buying guide should help with these challenges.

There are specific benefits and preferences designed especially for people in your situation. If you know ahead of time what to expect and how to go about the process, you will stress a lot less and achieve a state of peace and tranquility! Well, maybe not, but at least you’ll be better organized.

First things first: check your credit score! Experian and Equifax (among others) allow you to do this for free. Next, of course, you’ll need to visit with a mortgage broker to find out how much you are qualified to borrow. Yet, these are just the initial steps.

We have gathered some of the best online resources for first-time home buyers. If you’re ready to take the plunge, explore the links below!

Avoid First Time Home Buyer Mistakes

Buying a home is always exciting. For many people, it’s the fulfillment of a lifelong goal. But you can’t reach this goal without going down a road with possible pitfalls that may be hard for first-time home buyers to see.

There are a lot of mistakes that first-time home buyers make. While most aren’t that big of a deal, some can be pretty bad and cause process delays and money problems down the road. You should be aware of some of the most common mistakes first-timers make and how to avoid them.

Okay, so buying a house can be fun and stressful at the same time. If you’ve never bought a house before, it’s hard to know what questions to ask. These articles share some mistakes you should avoid making as you try to buy your first home.

 

First-Time Home Buyer Advice

As with any big project, buying a house is all about getting the details right from beginning to end. If you know what it takes to buy your first home ahead of time, you’ll be able to move through the real estate market with peace of mind.

Sure, buying a home for the first time can be challenging. Since there are so many requirements, steps, and responsibilities, you may be afraid of making a mistake that could cost you a lot of money. But first-time homebuyers can get some special benefits that were made to get more people into the home market.

What do you need to think about before you buy? What can you expect from the buying process itself? How can you make life easier after you buy your first home? Here are some articles to help you get the most out of your purchase.

 

What If You Have No Down Payment?

Facts: you don’t have to have a significant down payment to become a homeowner. There are ways to help you get into your new home without spending all your savings. Yes, some mortgages don’t require a down payment!

First-time and repeat buyers can buy a home without paying any money at closing, other than the standard closing costs. You can also buy a home with just a small down payment if you get a loan from the FHA, Fannie Mae, or Freddie Mac. There are also grants that could help you pay for the down payment.

Homebuyers no longer have to wait years to be able to buy a home, thanks to these programs. In fact, a lot of people could start the process today. They just don’t realize it. Here’s a few articles that explain what to expect when you want to buy a house with no down payment.

 

Home Buying Benefits for Veterans

Who can get a loan from the VA? The VA home loan program rules are even stricter than those for many other benefits. U.S. military veterans can use the VA home loan on their own homes if they meet the time-in-service requirements.

In addition, spouses of veterans who died on active duty or because of a service-related disability are also eligible. So are spouses of veterans who are missing in action or are prisoners of war.

To get a VA-backed loan, you will work with a private lender, like a bank or mortgage company. The Department of Veterans Affairs guarantees part of the loan against loss. This means that your mortgage lender can give you better loan terms, like letting you pay no down payment.

VA-backed loans have interest rates that are competitive with those of other home loans. This can help you buy a house, build one, or improve an existing home.

 

Home Buying Tips for the Disabled

If you have a disability, buying a home for the first time may seem intimidating. The good news is that there are programs to help you realize your dream of owning a home.

When it comes to buying and owning a home, the FHA (Federal Housing Administration) helps protect people with disabilities. So, when you’re looking for a house, you should know what accommodations you need and how much you can afford. It would be best if you also learned about your rights as a disabled home buyer.

Before you start the actual process of buying a home, you should consider what you need because of your specific disability. This could be closeness to pharmacies, medical facilities, and especially how the house is designed. Long, sloping driveways and excessive flights of steps are obviously things you might want to avoid.

 

YouTube Videos on Home Buying

Video content is becoming more and more popular. For many Millennials and Generation Zs, if both text and video are available on the same topic, they are more likely to choose video. Though, some people only watch videos when they need to learn something specific. As mobile technology advances, more and more people prefer to watch videos on their phones.

The fact is, YouTube videos, like the ones listed below, are a fantastic way for anyone interested in learning how the home buying process works without slogging through a lot of text.

 

Credit Not So Good? Try an FHA Loan!

FHA loans help many first-time homebuyers a lot because they offer mortgages with lower down payments. This is great for a lot of people. Yet, recent changes to the rules may have made the loans just out of reach for some people who want to buy a home but have bad credit. And that’s not so wonderful for those with a low FICO score.

According to the FHA, those who want to apply for an FHA loan must have a FICO score of at least 580 to qualify for the low down payment benefit. The interest rate is currently around 3.5 percent. Even if your credit score is less than 580, you might still be able to get an FHA loan. Those folks will have to ante up a 10 percent down payment which is likely a tough hurdle.

You may have to raise your credit score if you want a mortgage. While the economy’s immediate future is uncertain, you want to be sure the home you’re looking at won’t lose value. Be careful what you’re buying!

 

Improve Your Credit Score!

Some people may find it hard to figure out how to improve their credit score or even start one. Experion says that if you want to improve your credit score, you should “open accounts that report to the credit bureaus, keep your balances low, and pay your bills on time.” Sounds simple, eh?

So, lenders use what’s called a FICO score. A FICO Score is a 3-digit number that is based on the information in your current credit history. Lenders, such as banks or car dealerships, use this 3-digit number to determine whether to extend you credit (basically a loan). Generally, this number ranges from 300 to 850. Typically, ‘good’ to ‘excellent’ scores run from 650 to 800.

Your FICO score determines if you can obtain a loan and how much they will let you borrow. It also affects the length of time for repayment and what interest rate they will charge. It’s important. But, if it’s low, you can improve it!

 

 

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  • Chris Kane

    Chris Kane is a military veteran and former business owner currently living in the Des Moines, Iowa, metro. Chris is an inveterate entrepreneur and avid web developer who is not shy about sharing his opinions.

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