As a first time home buyer, you’re probably both excited and nervous about this purchase. After all, you’re more likely to spend more money on a house than you are on any other item that you ever buy in your life. With that being said, as a First Time Home Buyer, Tucson has many lenders that are willing to help you. There are, however, some things that you need to understand about the lending market before you search in earnest for your loan.
First Time Buyer Loan
There was once a time that as a first time buyer, you could get special treatment for a loan. Now, however, there is very little leeway for first time buyers. While there are still some lenders who offer loans with low down payments for first time home buyers, they are more the exception than the rule.
Your Credit Score
Your credit score is vital to your ability to get a loan. The lending market is very tight and if you have bad credit, your ability to get a loan will be unlikely. What’s more, even fair credit is going to be tricky, although if you have a large down payment and a good debt to owe ratio, then you may be able to get a loan with less than perfect credit.
Having a Down Payment
If you want to increase your chances of getting a first time home buyer Tucson loan, then you need to have a good down payment. In many cases, you’ll need to have 20% down to get a loan, especially if you have less than perfect credit. If you have great credit, many lenders will accept 10% down for your home.
Special Programs
There are some exceptions to very rule. For example, if you buy a home that qualifies for a USDA loan, you can buy a home without any money down. If you meet certain income requirements, you can get a FHA loan, which may require as little as 3% down.
Understanding what your loan options are is important to the home buying process. In fact, you should visit a bank and get a pre-approval for a loan before you even start house hunting. This will ensure that you look at homes in your price range and can move on an offer when you find the home that you love.
We offer guidance on the mortgage process and can help you lower the rates of your existing home loan.
