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What Is a First-Time Buyer’s Loan?

Share

What Is a First-Time Buyer’s Loan?

Carl Young

Carl Young is the Team Lead and Lead Listing Specialist for Young Marketing Group...

Carl Young is the Team Lead and Lead Listing Specialist for Young Marketing Group...

Mar 15 4 minutes read

If you are looking into purchasing a home for the first time and plan to use it as your primary residence, you may be eligible for special benefits. Make sure you do your research to find out about opportunities for federal assistance with down payments and closing costs, as well as grants. You may also qualify for a first-time buyer loan or other options from your lender.

What Is a First-Time Home Buyer?

Usually, when referring to a first-time home buyer, we are talking about someone who has never purchased a home of their own before. However, there are a few other circumstances where you may be considered a first-time homebuyer. Check with your lender to find out if these apply in your area:

  • If it has been three years since the last time you owned a home.

  • If you are a single parent or displaced homemaker who previously owned a home with your ex-spouse.

  • If your spouse owned a home in the past, but you did not.

  • If the only property you have owned does not meet building codes and cannot be repaired to this standard, so you are required to build a new structure.

If any of the above statements apply to you, there are several ways you may be able to benefit. You might be eligible for government loans or grants to help with down payments and closing costs. 

There are also charitable organizations that provide housing assistance, such as Habitat for Humanity and Neighborhood Assistance Corporation of America. Take some time to talk with your realtor and lender, as well as do some research on your own to find out about any federal or local programs you may be eligible for.

First Home Buyer Tips and Advice

The home buying process can be overwhelming, especially for first-time buyers who are unfamiliar with the steps. Fortunately, there are things you can do to prepare for the purchase of your first home. Follow the first home buyer tips below to get started.

  • Make a budget and calculate how much you can afford to pay toward your mortgage each month.

  • Pay off or pay down as much debt as you can and build an emergency savings account.

  • Save for the down payment. If you can put down 20% of the total cost of the house, you can eliminate the need for private mortgage insurance (PMI).

  • Check your credit score for free through Experian, Equifax, or TransUnion, and make improvements where you can. Dispute errors, pay down debt and utilize revolving credit to show consistency and reliability.

  • Save for closing costs.

  • Research mortgage options and assistance programs.

  • Choose a lender you can trust and feel comfortable discussing questions and options with.

  • Get preapproved for a loan. This is a good time to compare the monthly payment you are aiming for with the total house price it will line up with. It is also a good time to find out more about assistance programs.

  • Choose a real estate agent. It’s okay to shop around until you find one you like.

  • Decide what type of house you are looking for and which features are most important to you, as well as which features you may be able to do without if needed.

  • Research homes, neighborhoods, and schools. Attend open houses or set up appointments to walk through homes you like.

  • Once you find a home you want to purchase, pay for a home inspection to ensure there are no surprises later on.

  • Research homeowners insurance providers.

Choose the Experts at Young Marketing Group to Help You Buy Your First Home

You don’t have to face the daunting task of buying your first home alone. Contact Young Marketing Group for professional expertise and advice for all of your home buying needs, including first-time buyer’s loans and tips. 

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