Find Lenders with Special Loans for 1st Time House Buyers Seeking Low Down Payments & Great Rates for Good, Bad and No Credit

Let's be honest, purchasing a home for the first time can be a daunting and exciting event. Because the loan amount is likely to represent a figure that most people never encounter during their day-to-day life, the simple act of first time home buying for hundreds of thousands of dollars can be enough to make a lot of people hesitant. When you factor in additional things like taxes, interest, credit scores, and the variety of loans that are available, a person may find that they are a little bit overwhelmed by the entire process.

Fortunately, it is relatively easy for person to gain some much-needed confidence so that they can go about their first home buying experience without the worries or hassles that so many other people encounter.

1st Time Home Buyer Insight by James Swift

If you presently rent, then you are gaining equity for your landlord. If you become a homeowner than any equity gained in your property is all yours. Let's say your first-time home loan is an FHA and you only put a 3.5% down payment. So, on a $200,000 house that would be $7,500 down. Let say over the first 5 years your house appreciated 15% that would mean that you earned $30,000 in equity for living in your home and making your monthly payment. That's an amazing return on investment because whether you rent or own your home you have to pay for housing. Clearly it pays to own.

Know Yourself and What You Can Afford Before You Talk to a Realtor

It is difficult to overstate just how important it is for person to have a clear idea of what their credit history and score is before they ever start looking at homes. A low score can prevent a person from qualifying for a first-time mortgage before they ever begin the process of shopping for a house. Fortunately, first-time homebuyers have the option of going through the FHA which has much less strict lending guidelines than traditional banks and other lenders. That does not mean, however, that a person shouldn't take the time to make sure that their credit history is in good order and that their personal finances have been straightened out before they try to get approved for a first-time mortgage.

Understand the Market for First Time House Buying

There are several reasons for an individual to consider purchasing a home, not least of which is the fact that things like tax deductions for mortgage interest and tax credits for first-time homebuyers can go a long way towards making homeownership a much more affordable option than renting. Of course, to get the most out of these types of benefits, an individual will need to shop with in their price range rather than trying to buy the most expensive house that they qualify for.

In the end, a good combination of homework, research, and a working knowledge of how the average home loan works will deliver the type of confidence the person needs to purchase their first home without having to deal with the type of problems that can cause issues for people who don't take the time to go about the process properly. Understanding interest rates, closing costs and other fees, and the options that are available for first-time buyers can make buying a house a much more pleasant experience.

Why Credit Scores Are So Important for 1st Time Home Buyer Loans?

Buying your first home is something that can bring tremendous joy to your life and will also be one of the most important financial investments you make. Whether you live in your home for the rest of your life or end up selling it after a few short years, your home will be an integral part of your future.

There is a lot to understand here, too. First time home buyers can easily get overwhelmed by the process and everything involved in it. One thing that you absolutely must understand is the credit score and why it's so important. Nationwide understands credit and the market. Get help buying a home with bad credit.

Being a first-time home buyer with no credit can be a daunting experience and that's why Nationwide's priority is to match you with lenders that have the best ability to meet your financial needs.

With that in mind, let's look at some of the primary reasons credit scores are so important for first time home buyers. Once you review them you'll see why this is one of the key things you should focus on when building your financial stability.

• Interest Rates � Your lower credit score translates to an increased risk to those who lend you money. Thus, they will offset their risk by charging you a higher interest rate. The higher your credit score, the lower your potential interest rate may be. Interest rates will also depend on additional factors such as the type of loan you're taking out and even your debt to income ratio.
• Monthly Payments � With higher interest rates comes higher monthly payments. Securing a lower rate means you'll pay less for the loan as a whole and also that you'll have lower payments each month. This will be influenced by other factors like how much you're borrowing, but at the heart of your potential payment amount will always be your credit score.
• Down Payments � Your credit score could impact the amount you need as a down payment, too. FHA loans, for example, could require as little as 3.5% down if your score is at least 580.
• Maximum Loan Amounts � The maximum amount that you can borrow will greatly depend upon your credit score. Your income level will also influence this, but again � it's your credit history that shows your potential to repay a loan, and the higher your score the more likely a lender is to give you a larger sum.
• Reduced Closing Costs � Even closing costs can be influenced by your credit score. Closing costs can include a wide range of fees, from appraiser costs to attorney fees, and can increase dramatically depending upon your credit history.

As you can see, credit scores influence almost every part of the loan process and your ultimate loan terms and rates. The better the score, the better your loan � but even with a lower score, you do still have options. There are plenty of different government backed loans as well as private lenders who offer home loans to first time home buyers, and your credit score isn't always the deciding factor.

With that said, remember that your loan terms and rates will largely depend upon your credit score, and keeping it in the best health possible is one of the most important things that today's home buyers can do for themselves and their future.

5 Steps to Take When Buying Your 1st House with Limited Credit

Buying a home is something that many people dream of, but for those with limited credit it can feel like it's out of reach. Luckily, today there are numerous lenders that specialize in providing those with limited credit with a loan to buy their first home. If you've always wanted to buy a home, you do have options.

However, that doesn't mean that you should just accept a loan the minute you are offered it. Instead, those with limited credit should take a few basic steps prior to buying their home or seeking out a home loan. The following five steps are well worth taking and could have a big impact on your overall results from the process. Here's what to remember.

Step 1 � Do the Math on Your Budget

The first step is simply knowing what you can afford monthly. Look at your current finances and then create a budget that shows you just what you can afford to pay from a loan. Some loans for those with limited credit will come with higher interest and therefor have higher monthly payments. Knowing you can afford a loan is important.

Step 2 � Save Up for a Down Payment

How much do you currently have as a down payment? The larger your sum, the better your loan is likely to be. Higher down payments can mean lower monthly payments and even net you a lower interest rate and having a lump sum initially can help you qualify for certain loans you wouldn't have gotten otherwise.

Step 3 � Look into Government Backed Loans

The government offers numerous loans that are designed specifically for those with limited credit and for first time home buyers. Things like VA or FHA mortgage programs are well worth considering, and could be the path you need to take to get the loan that will give you the home of your dreams. The Veterans Administration offers no-money down home loans for people with bad credit and the Federal Housing Administration offers affordable home loans with a 3.5% down-payment on FHA loans.

Step 4 � Get Pre-Approved

Do you already have a pre-approval letter from a mortgage company you trust? Talking to them could help you understand more about what you're already qualified for and whether you can handle the loan. Plus, a mortgage pre-approval lets you begin the process of hunting for your home and even making an offer on one that you like. If you can, get pre-qualified. It makes a big difference in your negotiations and your confidence.

Step 5 � Review Your Loan Information Fully

When you finally are qualified for a loan, the next step is to look closely at it and review all of the information. Numerous things need to be considered including:

• What is the interest rate?
• Is it fixed or an ARM?
• How many years is the loan term?
• What are the closing costs?
• Can you afford the monthly payments?
• Is there a pre-payment penalty on the mortgage?

In short, you need to give your loan a full review in order to ensure that you understand everything about it before you sign on the dotted line. Knowledge is power, and the more you know about your loan the better.

Learn More About New Grants for First Time Home Buying

Read More about the Fed's Programs for House Buying - The Federal Reserve has gone to great lengths to help renters become homeowners with info on grants and down-payment assistance and first-time home buyers program insight.

HUD's Checklist for First Time Home Buying - Homeownership has its benefits but it pays to be organized and pragmatic when it comes to buying a house in the United States.

Find Government Home Buying Grants - The Federal government has invested significantly in annual budgets to help stimulate homeownership. See if you meet the requirements with the first-time home buyer grants.

Learn more about Low Income Federal Tax Credits - Take advantage of tax incentives that are available for people with lower incomes.

CALHFA Assistance for First Time Home Buying - One of the best ways to accumulate wealth is through homeownership. Find out if you are eligible for 1st time home buyer program incentives like down-payment assistance, etc.

Nationwide provides a path for consumers to find superior refinancing and home loans with options like credit line conversions that transform variable interest into a fixed amortization schedule without annual fees or early termination penalties.

3.5% down is all you need for a low interest rate first time home loan that is insured by the Federal Housing Administration. This FHA choice has been popular with first time homeowners for decades. In many cases, these first timer loans help ease the transition for homebuyers purchasing a home.

Consumers also seek FHA because in some cases they approve first time home buyer loans with bad credit. The guidelines enable lending underwriters to approve borrowers that have credit scores as low as 500.

We help renters become homeowners all the time without increasing their housing expenses. Our consultants will try and help you qualify for financing even if they are a 1st-time home buyer with limited or poor credit. First time home loan rates have never been better. 30-year home loan rates remain attractive so find a house and make an offer.

What Is Needed To Get the Best Loan for Home Buying | CALHFA for First Time Home Buying | How to Get a Mortgage Pre-Approval Letter | Top 7 Things to Consider When Getting a First Time Home Buyer Loan