First Time Home Buyer USA

 Sparsh Asija

First Time Home Buyer USATIPS FOR FIRST TIME HOME BUYER USA: 3CALoan

Buying a new house is an exciting and good investment. If you are first time home buyer USA, you should know where to start. It can be complicated and even scary for you. But if you know some tips, then you can buy your first home easily. In this article, we will discuss some helpful tips for every first time home buyer USA.

CHECK AND MANAGE YOUR CREDIT

When you will apply for a home loan, your lender will check few factors and they will also check your credit score. It is one of the important factors. The credit score is the number ranging from 300 to 850. Your credit score will base upon the factors like your payment history, types of credit used, outstanding balances, the number of credit inquiries you have done, and length of credit history.

By credit score, your lender will get some idea about your creditworthiness and the risk they will take by lending their money to you. The interest rate and type of loan will be based on your credit score. If you have the low credit score, it will be bad for you. And if you have the good credit score, it will better for you. If you don’t know about your credit score, you can find it on annualcreditreport.com by giving your details.

You can check the tips which we will discuss to improve your credit score. You can also ask your lender or a financial professional for advice to improve the credit score. They can answer all your questions and concerns throughout the process.

DETERMINE WHAT YOU CAN AFFORD

You should check at your monthly budget and take decision according to that budget. Your lender will qualify you for a dollar amount which you have applied for according to your debt-to-income ratio.  They will explain you everything and they will also give a loan estimate which will show your estimated monthly payment. You have to make sure that the monthly payment will be comfortable for you or not. Just keep in mind that this monthly payment doesn’t include water, electric, cable, etc and also you should always take that amount which you can afford.

If you get to qualify for $200,000, but the home which you want to buy is for $175,000 that will be great for you. You will have smaller monthly payments and can save extra money or you can spend it somewhere else. While setting a budget, you can save money by cutting the spendings which is excess. For example, you can eat less from outside, Maybe you eat five or six meals a week, you can cut down to one or two meals a week. You will save less, but that savings will add up and become large.

START SAVING MONEY

Down payment is the factor which keeps people away from first time home buyer USA. Hard money loans require a down payment of 25-35%. The down payment for conventional loans is 20% to avoid PMI. There are many more home loans which offer less down payments to qualify. FHA loans only require a 3.5% down payment. For example, If the loan amount is $250,000 then only have to put down $8,750, but in the conventional loan, you have to put down $50,000. A VA loan is for active and retired military members. They offer favorable loan terms and you don’t have to put down any money that means 0% down payment. You can ask your lender about the loan options you have for a suitable down payment. Keep it in your mind that you will also need funds to pay closing costs.

You should save money for down payment whether you want to opt 20% down payment or 3.5%. When you will become a homeowner, you will also require funds for any maintenance or emergencies. You should have savings account for home-related expenses.

DON’T FORGET ABOUT CLOSING COSTS

Many loans offer low down payments and no down payment, but every loan has the term to pay closing costs. The closing costs are 2 to 6% of the purchase price. Closing costs include things like third-party fees, title and recording fees, escrow, loan-related fees, prepaids, mortgage insurance. You can negotiate the closing costs with the seller.

 

FINAL THOUGHTS

If you are first time home buyer USA, you can contact us anytime to take a home loan. When you are interested in buying a house and flipping it, getting a hard money loan for investment property is a good option. We know that sometimes people have a harder time getting a home loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan.

We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.