Avoid These Pitfalls When Buying Your First Home

Written by Channel 8 News Reno. Posted in Cherry creek loans, Fha home loans, Virtual loan officer positions

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Did you know that up to 80% of all quests to find a new home start online? The internet can be a valuable tool, offering a certain level of immediacy, and a wide breadth of information. Still, sometimes it is smart, even crucial, to do things the old-fashioned way. Primarily research online is fine, but, somewhere down the line, you should make a few calls, at the very least. What should you know, as a first time home buyer, before you make calls, and step out into the real world?

Consider Assistance Programs

Purchasing your first home can be expensive. Take advantage of the help, including financial assistance, out there. One of the first time home buyer requirements is to have a realistic idea of how much you can afford. There is no way of knowing that, without fully understanding the options available to you. Some of the most popular assistance programs are FHA loans, or the Federal Housing Administration loans, and programs like NeighborLIFT.

Fha home loan lenders work directly with the U.S. Department of Housing and Urban Development. The government-funded program is intended to help get more people into homes. One service, known as a 203(k), provides new homeowners with the means to make crucial home repairs. Similarly, NeighborhoodLIFT aims to help more people own homes. The NeighborhoodWorks and the Wells Fargo Foundation program promised $170 million to help first time home buyers in 2012. So far, assets have been used to help with down payment loans, and also to fund initiatives to educate new homeowners.

Be Realistic About Closing Costs

Closing fees can be costly, and forgetting to work them into your budget can be a grave mistake. Save yourself a lot of trouble, by getting a realistic idea, or estimate, of closing costs. Laws require lenders to release a good faith estimate, or GFE, during the early application process. From there, lenders can legally raise closing costs by about 10%. Play it safe by factoring in the highest possible closing fees. Why do companies charge these closing costs? Closing costs cover title fees, settlement fees, taxes, attorney fees, fees for running credit reports, appraisal fees, survey fees, loan origination fees, and more.

There are no official first time home buyer requirements, but, for all intents and purposes, there really ought to be. Do your homework. Research assistance programs, and get a couple of good faith estimates, before getting out there and making any final purchasing decisions. Visit here for more information.