It would be an understatement to say that you are excited about owning your first property. Irrespective of the number of times you buy a property later in your life, you aren’t quite going to experience anything similar. But with all the fun and excitement that comes with buying your first home, comes the fact that the process can also be quite overwhelming. From choosing the right property to being able to find the best home mortgage deal, you are in for a bit of fun and nerve-wrecking experience for the next few weeks.
To start with, it isn’t difficult to own a property because of first time home buyer programs in Houston. Though your pay check may not be something that others envy about but given the number of home mortgage programs that are available, you can still move into a property of your own within a short span of time. However, you will have to watch out for the steps you take. Owing a property isn’t your only goal – you have to find a property that satisfies all the required criterion and can also get you the best out of home mortgage program. So, here are five steps to success with first time home buyer programs in Houston.
#1 List Your Preferences
Remember the golden rule, don’t try and negotiate with a seller before your home mortgage is sanctioned. If your loan takes time to process, the seller may not be willing to wait for you. But before you start looking for a home loan program, you should have a clear idea about your preferences. Whether it is your budget or the choice of community you want – all of these things should be sorted in your mind. Once you know these, it makes the process of seeking home mortgage a lot easier.
#2 Ask Loan Experts
You may have been good at math or even had experience in handling a company’s finance. But that doesn’t make you an expert in demystifying first time home buyer programs in Houston. In fact, most loan seekers are in the middle of the ocean when it comes to understanding loan eligibility, credit score and down payment that would offer the best value for money. You shouldn’t scratch your head trying to understand such things that require expertise. Instead, seek help from an expert at the earliest. They will help you choose the right path and save you money in the long run.
#3 Get a Preapproval
Before you seriously get into the process of zeroing in on a property, you must make sure you have preapproval from the lender. You shouldn’t mistake it for pre-qualification which doesn’t take your credit score and financial situation into account. If you get into property hunting without a preapproval, then chances are that your loan application gets rejected by the lender even when you are into the initial stage of conversation with the seller.
#4 Term of Home Loan
This is one thing that often tends to put loan seekers into a dilemma. Should you opt for a 15 year loan term or go in for 30 years? The very fact that mortgage is available for different terms means that different terms fit different customers. You have to consider a few things to decide on a loan term and this should include your financial health, the period you are planning to stay at your home and the stability of your income.
#5 Put in Your Money
Traditionally, most lenders would require you to put in 20% of the total amount as down payment for the property. These days, however, you can own a property by making a down payment as low as 3.5% or no down payment in some of these programs. However, it is always wise if you can put in the maximum down payment as it can ease your monthly payments substantially and also help you avail loans at more attractive interest rates.
So, now that you know it all, don’t bypass any of these steps when you are planning to go for first time home buyer programs in Houston as they ensure you get the best deals.
About Author: Joan Gallardo has more than 18 years of experience as a Senior Loan Officer and he specializes in helping clients with first time home buyer programs in Houston. He regularly writes on FHA loans for bad credit and other home mortgage issues.