So you’re on the cusp of joining the ranks of first time home buyers.
We understand how daunting of a task this can be. After all, locking down your desired place of residence is no small order. But we’re happy to report that there are several resources out there geared towards helping first time home buyers on their journey. LeapFrog is one of those resources!
The Value Of Having More Than One Estimate
It’s always better for first time home buyers to have a range of options, and it’s never ill advised to get a second opinion. Nabbing a few estimates will at the very least paint a solid picture of your range of what to expect.
One possible concern here may be the impact on one’s credit. Luckily, there are safeguards in place to keep your score intact. This comes with a few stipulations though. You’ll want to secure these estimates within a limited timeframe to remain eligible for this perk. Leading advisors approximate two weeks as being a good rule of thumb.
Before The Contract
That said, prior to engaging in any paperwork on a home, you’ll want to get a quote from your lender. Some lenders will already have this for you upon passing an initial screening. However, this is not a guarantee, so always make sure to request one.
It should include any monies related to closing, as well as any later recurring rents. It’s very important to know these figures so that you can make a fully informed decision when deciding on a home.
Knowing The Different Loan Options
As a potential home buyer, it’s good to know some of the kinds of loans that are available to apply for:
FHA Loan
FHA Loans are an option geared towards first time buyers, or buyers that fall within a typically lower income range. Do keep in mind, though, that lower upfront costs usually means a more complex rent arrangement.
USDA Loan
Buying a home in a rural area? USDA loans come in the form of programs that offer no money down deals to those who qualify.
VA Loan
This loan type assists potential home buyers that carry a record as military veterans. As its name suggests, the criteria is very specific to qualify.
Conventional Loan
Of each selection, this can be considered the classic option. It follows the industry standard procedure for loan issuance and repayment. It’s advised that this avenue is good only if you’re sporting healthy credit over top of minimal pending debits.
Be sure to check back in next week, as we’ll be doing a deeper dive into each of these different types of loans. We’ll provide a greater definition of each, giving you the perfect picture to determine which suits you best.
Working With LeapFrog
This is only the start of your tips to follow as a first time buyer. LeapFrog is dedicated to bringing you the latest and most up to date information on home buying. Contact us today to learn more!
