Buying your first home can feel overwhelming. There are a lot of things that you have to take into consideration including making sure that you are purchasing a home that suits your needs in addition to financing said home. The process of getting financing for your first home may be more involved than you thought it would be. Here are three things that you should be aware of when it comes to getting a home loan for the first time.
1. It Can Take Time
The first thing that you should be aware of is that buying a home can take some time. Mortgage lenders will take some time to look into your financial history in order to determine whether or not they should approve your application. You will also likely need to get an appraisal on the home that you intend to purchase. On average, it takes around 30 days from start to finish to get a home loan. If lenders are particularly busy, it can easily take between 45 and 60 days to get a home loan. It's important to keep this in mind when buying your first home.
2. You Have Options
Another thing to consider when buying your first home is that there are a variety of options to choose from when it comes to home loans. There are even loans specifically targeted at first time home buyers. If you are buying a home for the first time, you may want to look into FHA loans, VA loans, and even USDA loans in addition to conventional loans. These loans targeted at first-time buyers tend to be less stringent than conventional loans. FHA loans can be obtained with down payments as low as 3.5 percent and credit scores of 580. Most conventional loans require down payments of at least 5 percent and credit scores of 620.
3. Shopping Around Helps
Finding the right home loan for your needs can be a challenge, however, there is something that you can do to ensure that you get the best loan possible. Shopping around and looking at various mortgage lenders will help you get a better idea about your options. Chances are that your interest rate and other costs will vary from lender to lender. In the long run, shopping around can save you thousands of dollars.
If you are getting your first home loan, there are a few things that you should know. First, it can take upwards of 30 days from start to finish. It's important to consider this when searching for a home. You also have plenty of options to choose from when it comes to home loans, including ones that are geared toward first-time buyers. Shopping around and looking at various lenders will help ensure that you find the right home loan for your needs.Share