Tips For First-Time Home Buyers
Congratulations! You've decided to take the very important step
of leaving the world of renting to achieve the status of
homeowner. You are no doubt aware of the benefits of
homeownership, including tax savings and other financial
incentives. Here, we outline some resources available for the
first-time home buyer.
As a first-time homebuyer, you are eligible for many programs
offered by mortgage companies and the government. An
often-overlooked resource for the first-time buyer is their
local county government or municipality. Many counties in the
United States offer incentives for first-time home buyers. Those
incentives include down payment assistance and grants - free
money for buying a home if you meet their requirements. As well,
some governments, in conjunction with local mortgage companies,
offer reduced interest rates for the first-time buyer. Some
mortgage companies even offer relaxed lending standards to help
increase your chances of being approved.
Many organizations offer free home buying seminars that outline
the ramifications of homeownership. It would be wise to attend
such a seminar, as ignorance can be extremely costly in the long
run. People have been through situations as dire as foreclosure
because they were not prepared for the realities of being a
homeowner. What's more, some mortgage companies require you to
attend these seminars in order to qualify for first-time
homebuyer programs.
To take advantage of these offers, check with your county's
department of housing. In many cases, they can send you a packet
that outlines all of their available programs, as well as the
guidelines for qualifying for the programs.
While you check into these government resources, you should also
order a "tri-merge" credit report. A tri-merge credit report
refers to a single report that contains the information from
each of the three major credit reporting bureaus. Those three
are Equifax, Experian, and TransUnion. The tri-merge report will
also contain your credit scores from all three bureaus.
When it comes to the world of mortgage lending, credit scores
determine almost everything. Your score determines things such
as how much money you can borrow, how much documentation you
need to present to the lender, what your interest rate will be,
and how much money you have to pay up front (the down payment).
People have a tendency to believe things that are written, even
if factually incorrect. When it comes to reading your credit
report, you must scrutinize every single entry with a jaundiced
eye. Just about every piece of information you see on your
credit report factors into your credit score in some way.
Therefore, it is crucial that you make a note of any errors in
your report so that they can be corrected.
There are many techniques you can use to boost your credit
score. There are even some methods that can boost your score
overnight. Regardless of the methods you use, make sure that you
do everything possible to raise your scores. By doing so, you'll
be in a fantastic position to be able to take advantage of any
great offers that come your way.
When buying a home for the first time, the most important thing
to remember is that you are never alone. Utilize the resources
outlined here, and you'll find the process much less
intimidating than you imagined.