Global Statistics

All countries
5,637,525
Confirmed
Updated on May 26, 2020 4:49 pm
All countries
2,404,383
Recovered
Updated on May 26, 2020 4:49 pm
All countries
349,300
Deaths
Updated on May 26, 2020 4:49 pm

Tips to Help First Time Home Buyers Find Financing

What home buyers expect from the 2020 U.S. housing market

HousingMarket Review: The U.S. housing market in 2020 It’s not only home buyers who are closely monitoring the housing...

Q1 2020 State of the U.S. Housing Market

As we embark on the start of a new decade, it seems like an appropriate time to take stock of where we...

U.S. Housing Market Outlook 2020

2020 will be an interesting year for the U.S. housing market, thanks to rate decreases by the Fed and mortgages remaining at...

Market Leaders vs. Market Followers

Responding to market trends is a necessity for most businesses. Consumers are the market and therefore are the ones generally viewed as...

What Lower Mortgage Rates Say About the 2019 Housing Market

HousingMarket Report: How Falling Mortgage Rates Will Affect the 2019 U.S. Housing Market Mortgage rates have been going through...

As the economic events during the last decade continue to unfold, the housing market has demonstrated a strong comeback and is making a healthy headway towards a solid rebound.

Today’s home purchasers cannot afford to forget about the tremendous financial responsibility of purchasing a home, and should begin to prepare now for a future purchase.

Here are four time tested tips to find financing for a first time home buyer:

Strengthen your credit score to attract better loan terms.

Since the last real estate bubble, lenders have become stringent and tightened their loan requirements when it comes to borrowers credit history. Mortgage lending basics however, remain unchanged:

The higher your credit score is, the lower your down payment and monthly payments will be.

To bolster your credit score, immediately settle any outstanding debts and refrain from applying for and obtaining any new credit lines for several months prior to purchasing.

Secure savings for a down payment, and for reserves after closing.

Savings are obviously important for a down payment, but they have other benefits as well.

Prospective home buyers with three to five months’ worth of reserves (mortgage payments set aside) are much better home loan candidates. Mortgage lenders will often offer a little more latitude on other approval factors if a buyer can show ample budgetary cushion.

A healthy savings account can also act as an “insurance policy” against unforeseen income related problems, home expenses or repairs and give confidence to lenders.

Get pre-approved with a licensed mortgage lender to help your home search.

Sub-prime mortgage loans may be a thing of the past, but you may still be interested in looking at homes you can’t really afford. By getting loan pre-approved as a home buyer, you can save yourself time and angst of finding your dream house, only to realize you cannot make the payment.

Home buyers can also get into a better position to make a solid offer to purchase when the perfect property does come along. By doing budget research first, and submitting to a thorough analysis of your income and spending power second, you are also less likely to get in over your head with your monthly mortgage payment.

Do your homework before bidding on the right home to maximize your home loan budget.

Before you make an offer on a home, do some digging to find data on the sales trends of similar homes in the neighborhood. Consider only the most recent home sales of similar sized and type properties in the same area during the last 3 to 6 months.

(As a quick example, if area homes for sale have recently sold for 5 percent less than the asking price, a safe opening bid should probably be about 7-8 percent lower than what the seller is asking. If homes in the area are selling quickly, you may want to offer 1-2 percent above asking price.)

Visit these sample real estate sites to help you get started with your research:

  • Zillow
  • Trulia
  • Realtor.com

Follow these four tips and consider working with an experienced local real estate professional, and you’ll likely find the best deal and the best mortgage terms on your first home purchase.

Hot Topics

Solutions to Make Small Spaces Feel Bigger

Since the real estate bubble deflated seven years ago, many people have learned how to make the most of living their life by adjusting to a slightly...

Get Pet Friendly or Find Another Home

Home buying pet owners should leave nothing to chance and work with a realtor who can help them find a warm and loving community for themselves and their pet.

5 Factors to Consider When Choosing a Neighborhood

Need help finding the right neighborhood for your next home? As the old saying goes, "the first 3 rules of a successful real estate...

Related Articles

How Will the Coronavirus Impact the Housing Market?

Welcome to HousingMarket. This is our first post.

Q1 2020 State of the U.S. Housing Market

As we embark on the start of a new decade, it seems like an appropriate time to take stock of where we...

5 Things Newlyweds Should Consider Before Buying a New Home

Think that you are ready to buy a new home? If so, here are five best practices to implement in preparation for the new home buying process: 1....