Are home buying nightmares stopping you from purchasing a home? If so, then we have good news for you. Most first-time homebuyer fears are unfounded and completely avoidable with the guidance of a trusted mortgage professional! Sure—it can be downright scary making a decision as big as purchasing your first home. But you shouldn’t let these fears spook you—they’re not as frightening as they seem!
Fear Number 1. I don’t have enough money for a down payment.
This fear is built upon the misconception that you need a 20 percent down payment to qualify for a mortgage—but that isn’t the case anymore. In fact, some loan programs, such as USDA and VA loans, don’t require a down-payment for qualified buyers. FHA first-time homebuyer loans require as little as 3.5% down, and some conventional loan products require as little as 3% down.
Plus, if you’re a first-time buyer, you might be able to qualify for downpayment or closing cost assistance programs. You can contact your local loan officer for more information on these programs.
Fear Number 2. I’m too scared to check my credit score.
Is your credit score haunting you? You’d be amazed at how many people are downright scared of their credit score. But checking your credit score will allow you to know what you’re working with, so you can start improving your credit if needed. Plus—you might find out that you have stellar credit—which is something worth being proud of.
Checking your credit can help you detect and dispute other errors, such as information from someone else’s report or other inaccuracies that were added to your report by mistake. Plus, it could help you catch identify and credit card theft early on.
The good news is that you don’t have to have perfect credit to qualify for a mortgage—especially if you’re a first-time homebuyer. Buyers with credit scores as low as 620 could qualify for an FHA mortgage. Buyers with higher credit can qualify for more loan products, and better interest rates, so it’s worth knowing where you stand.
Fear Number 3. I’m worried I’ll buy a money pit:
First, the A.C. system breaks down. Then, the water pipes burst. Next thing you know your ceiling is leaking and you need to replace your entire roof. While buying a money pit is a valid fear, it can be avoided by hiring a home inspector before purchasing the home. Home inspections are not required by your lender; however, a good real estate agent will recommend that you hire your own inspector.
The inspector will thoroughly inspect the house and point out any issues that need to be fixed immediately, as well as an estimated time-frame for repairs down the road. Additionally, you can keep the list the inspector put together as a checklist of things to do once you move in. This way you’ll at least be able to know what repairs are immediate, and what repairs will be coming within the next few years so you can budget for those costs.
Fear Number 4. I’m scared the process will be too complicated:
The thought of applying for a mortgage can be daunting for many, especially for first-time homebuyers who aren’t sure what to expect during the process. The help of a qualified, local lender can ease your fears and simplify the process for you, helping you to understand exactly what’s happening every step of the way. A local lender will provide you with one-on-one customer service, so you always know who to call on when you have questions or concerns.
The information contained herein (including but not limited to any description of lending programs and products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without notice. This is not a commitment to lend.
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