If you are a first-time home buyer, you can pursue your dream of owning a home. Owning a home may be easier than you realize with the assistance of FHA loans. FHA loans are distributed by the Federal Housing Authority, and they may given to people with bad credit or extensive student loans.
Your first step in trying to obtain an FHA loan should be to save up the cash for a down payment on your home. Traditionally, lenders will tell you that having 20 percent for a down payment on a home is a good idea. When you are in the position of applying for an FHA loan, you likely do not have the cash for this large down payment. FHA loans are beneficial and can provide some relief to the first time home buyer, because they only require that a person pay three percent of the value of a home upfront.
FHA loans will allow people with a high debt-credit ratio to obtain loans. Even if you have student loans, you may still be able to qualify for an FHA loan.
You should consider your budget before you apply for a mortgage. You should be able to confidently anticipate your budget for the next couple years during the period in which you will own the home. Be sure that you can afford the mortgage of the home you want to buy. Do not try to live beyond your means. Also, prepare for the event that you or your spouse loses a job.
When you do find a home that fits within your budget, you can then meet with lenders to see whether you pre-qualify for a loan. The lender will run a credit check and seek to determine how much "house" you can afford. If you are self-employed, you should be aware that a report for two years of your income will be required. A lender will typically want to see that you have had a consistent income for a period of two years. This can assure the lender that you will be able to afford the house in an economic downturn.
Also, a first time home buyer should ask a lender about any state programs that help first time home buyers. In states like Georgia or Florida, one can take advantage of first time home buyer programs. The loans that are available through statewide programs will typically have lower interest rates than traditional loans.
A lender will want to provide a first time home buyer with a mortgage that is no more than 25 percent of a person's monthly income. One should be prepared to meet with a lender by calculating how much he or she can afford in monthly payments. A first time home buyer should also take other costs into consideration. Costs like utility bills, landscaping costs and HOA fees can add significantly to the monthly costs of a home. One should make sure that he or she has fully outlined all of these expenses and is prepared to handle them.
Meeting with a lender can help a person get on the right track for pursing a mortgage. Even if one is thinking about buying a house in one or two years, meeting with a lender can help him or her get organized in the process.
Your first step in trying to obtain an FHA loan should be to save up the cash for a down payment on your home. Traditionally, lenders will tell you that having 20 percent for a down payment on a home is a good idea. When you are in the position of applying for an FHA loan, you likely do not have the cash for this large down payment. FHA loans are beneficial and can provide some relief to the first time home buyer, because they only require that a person pay three percent of the value of a home upfront.
FHA loans will allow people with a high debt-credit ratio to obtain loans. Even if you have student loans, you may still be able to qualify for an FHA loan.
You should consider your budget before you apply for a mortgage. You should be able to confidently anticipate your budget for the next couple years during the period in which you will own the home. Be sure that you can afford the mortgage of the home you want to buy. Do not try to live beyond your means. Also, prepare for the event that you or your spouse loses a job.
When you do find a home that fits within your budget, you can then meet with lenders to see whether you pre-qualify for a loan. The lender will run a credit check and seek to determine how much "house" you can afford. If you are self-employed, you should be aware that a report for two years of your income will be required. A lender will typically want to see that you have had a consistent income for a period of two years. This can assure the lender that you will be able to afford the house in an economic downturn.
Also, a first time home buyer should ask a lender about any state programs that help first time home buyers. In states like Georgia or Florida, one can take advantage of first time home buyer programs. The loans that are available through statewide programs will typically have lower interest rates than traditional loans.
A lender will want to provide a first time home buyer with a mortgage that is no more than 25 percent of a person's monthly income. One should be prepared to meet with a lender by calculating how much he or she can afford in monthly payments. A first time home buyer should also take other costs into consideration. Costs like utility bills, landscaping costs and HOA fees can add significantly to the monthly costs of a home. One should make sure that he or she has fully outlined all of these expenses and is prepared to handle them.
Meeting with a lender can help a person get on the right track for pursing a mortgage. Even if one is thinking about buying a house in one or two years, meeting with a lender can help him or her get organized in the process.
