Determine How Much You Can Afford
- Start out by checking your credit report. Federal law dictates that you have the right to a free copy of your credit report every twelve months. You can retrieve a free copy through AnnualCreditReport.com. Before applying for a loan, you will want to correct any disputes and possibly build your credit.
- To qualify for a first-time homebuyer’s loan, your credit score needs to be in the 640 range. After you sign a loan application, the lender will pull a credit report. Information collected on financial obligations include car payments, credit card debt, and any other monthly payments made.
- Lenders will verify your gross income. Gather
mostrecent pay stubs, tax returns, and bank statements. After the buyer has provided the correct documentation proving eligibility to apply for a loan, the lender will run a down payment verification. Sometimes, a preapprovalletter is not enough for down payment verification.
- One of the most challenging things for buyers is saving enough money for a down payment. Florida down payment assistance programs
areavailable via the web. For example, the Florida Housing Finance Corporation offers assistance with down payment and closing costs to first-time homebuyers.
- A first-time homebuyer is defined as someone who has not owned a home for the past three years.
Finding Your Dream Home
The next step will be to find a knowledgeable real estate agent in the area where you are considering purchasing your future home. A real estate agent’s commission is paid by the seller and does not cost anything for a buyer to hire an agent.
Some people believe that it is cheaper to purchase a home without a realtor, but more often it will end up costing you more. Purchasing a home for the first time doesn’t have to be intimidating. With this first-time homebuyers guide, the process of purchasing a new home should run effortlessly.
Purchasing a home for the first time is both frustrating and exciting! Double checking that you are prepared when applying for your loan should curtail some of the aggravation. For the lender to create the best assessment have all your bases covered regarding information on your credit score, gross income, and financial obligations. The Molinares Real Estate Group can help you achieve finding your dream home. Contact us today to learn about your options as a first-time homebuyer.