If you have been renting your home for any significant period, buying a house for the first time can feel liberating, like the start of a new chapter in your family’s history. A house is more than shelter– millions of American families rely on their homes for financial security as well, to help them build long-term wealth. At The Federal Savings Bank, we believe first-time homebuyers should have access to resources that will help them make the most of their path to homeownership. Read on for a couple tips that may be helpful to first-time home loan applicants.
Consider FHA and VA Loans When Buying a House for the First Time
The United States government has a number of programs intended to help eliminate your barriers to buying your first home. These include low cost, low-down-payment FHA loans guaranteed by the Federal Housing Administration; and no-down-payment VA loans for veterans and other qualifying borrowers. Both programs offer flexible options for potential homebuyers who want to take a new mortgage, and often have lower credit score requirements as well. Many of these programs are specially targeted at those buying a house for the first time, so it’s worth seeing if you qualify.
Maximize Your Time: Meet With a Loan Officer Early, and Get Pre-Approved
The real estate market can move lightning fast, so one of the best ways for you to stay competitive while you’re buying a house for the first time is to obtain a pre-approval from an established mortgage lender. Providing a copy of your pre-approval letter to the owner shows you’re serious about buying their home and that you’re ready to close soon. When you set foot into the perfect home for your family, you won’t want to wait.
Your loan officer will ask you for documentation like paystubs, tax returns, and bank statements, to demonstrate the income and assets you’ll list on your loan application. They’ll also ask permission to pull your credit when you’re buying your first home. But be careful about applying for any new credit, like a credit card or auto loan, while you’re applying for a mortgage, as taking on additional debt might change what you qualify for.
Wherever you are in your homebuying journey– if you’re just starting out, or you are days from the closing table and looking for a competitive interest rate– The Federal Savings Bank is ready to be at your side. Contact us at +1 877-788-3520 to speak for free about your home loan options. We look forward to helping you into your dream home!
Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.