Home Mortgages for First time Home Buyers

Check for any programs that could give you discounts, dollars or both

If this is your first house, and you're interested to find any special programs that you may be eligible for, call your local government. There's usually someone at the city or county level who will know if there are any special programs in your area that you can apply for. These programs can sometimes offer several thousand dollars toward the purchase of your new home.

Also, if you work for the government, have ever been in the military, have parents in the military, or teach, there may be special programs for you through the VA. VA loans are particularly attractive because you won't be required to pay private mortgage insurance ($100 - $150/month) that is required when you borrow more than 80% of the value of the property.

If you work for a large employer, ask if they have a special relationship with a bank.

Often large employers work special deals with banks for their employees to get good home mortgages. After all, employees who have a home mortgage are happier and less likely to quit. Even relatives may be willing to help you out with your down payment, so that you can get your home mortgage.

This is very common for first time home buyers. I borrowed a small amount from my parents to help with closing costs. Others I know have borrowed the entire amount needed to purchase a house in order to get a lower interest rate.

I recommend that you visit a few local banks or credit unions; they have an interest in helping out locals. Many banks have at least one person specializing in finding home mortgages for first-time home buyers. Don't be shy, you won't know unless you ask. And often, a home mortgage payment is less than, or the same as, rent. Since this is your first home mortgage, things will be easier for you if you have a person that you can sit down and talk to. Going over the phone or internet for your first home mortgage can leave you without someone to help you through the process. On the other hand, some home mortgage companies may be faster than banks. It really depends on whomever you're working with. The bottomline is that there are many options.

Get Pre-Qualified First (before you go house hunting):

Your first step is to get pre-qualified. This is important, because it tells the seller that you're serious about purchasing their home and that you should be able to qualify for a home mortgage. Essentially what happens is you provide the bank or mortgage company with some information and based on your credit score and salary, they will figure how much you can afford to spend on a house. Understand that this is not a guarantee of a home mortgage, but it is close. It means that if all requirements are met on your mortgage application, you will get your home mortgage. After you pre-qualify, don't even think about changing jobs or quitting. Also, don't go buy a new car or something requiring a large loan. This may sound like common sense, but people do it and it has derailed a lot of home mortgages. Stay at your current place of employment for just a little longer, if you can. If you can't, get another job and let your home mortgage company representative know what is going on. If they find out you quit right before closing, they can cancel the home mortgage. So stay where you are.

Next, find a house. This is the fun part. You can either go with a real estate agent, or find a house yourself. Bear in mind, though, that the seller is paying the agent, not you. So it won't cost you anything to have an agent work for you. And the agent will walk you through the process.

Finally, pick your closing real estate agent. You have the right to decide which law firm will close your home mortgage. Every law firm charges something different, so call around. You could save hundreds. Your closing agent will put together the finishing touches on your purchase and help you get into your new house. If you tell them that this is your first time, they will be careful to walk you through the process. The timeline from pre-qualification to closing can take as long as three months, so be patient.

You are not alone in your home mortgage process. As scary as it seems, everyone you talk to will want you to have the right house. And that is what makes the business great.

Buying a house changes your life. A lot like having a baby, things are never the same again for you. There are many people out there to help first time homebuyers get a home mortgage. It is an exciting time; enjoy this new experience.