Making the decision to purchase a home can be very exciting, but we know that it can also bring about a lot of questions and concerns. It’s a very big decision especially for a first time home buyer and we at JZ Mortgage Services, Inc are here to help guide you along the way on this journey.

The First Step

The first thing you want to do is prepare and review your finances. Your credit score is very important when discussing finances with a lender so you want to do whatever you can to make sure it’s at the highest it can possibly be. You will also want to review your credit reports to make sure any derogatory marks on there have been fixed if they can removed or disputed.

Another part of financing that some first time home buyers don’t take into account is a down payment. Many first time home buyers don’t have a large down payment, so they may think that means they have limited options to buy a home, or that they may not be able to buy a home at all. Of course the larger the down payment, the less the monthly payment will be. However, saving for that large down payment takes times, and that means mortgage rates and the market can change as well. But there are still options for those that don’t have that 20% down they think that is required.

There’s a First Time For Everything

First time home buyers do have options for assistance if they aren’t able to come up with a large down payment. It’s important to look into all options in your area as they may require little or no money down when purchasing a home.

There are a few programs that can be helpful to first time home buyers:

  • VA Loans are useful to those members that have served in the military. They are guaranteed by the US Department of Veterans Affairs and allow buyers to put nothing down when purchasing a home.
  • USDA Loans are useful to those buyers that want to purchase in rural areas and are financed by the US Department of Agriculture.
  • FHA Loans are great for first time home buyers because they allow for very small down payments, lower than even 5% for qualified buyers. Another reason FHA loans are good for first time home buyers can be used even if you don’t have perfect credit and are backed by the Federal Housing Administration.

What About The House?

Financing is a fairly big part of the home buying process but another thing many first time home buyers don’t fair to consider is the cost of repairs to the home. Most homes are not going to be available turn key, so it’s important to consider home repair costs when discussing your finances and how much is in your budget. Depending on where you are purchasing and how old the home is, some of these repairs can come at a high cost and have to be weighed in when you decide to purchase. A good real estate agent should be aware of such things, but you will want to do your own research or possibly hire an independent contractor to evaluate these things as well.

Call Us Today

We know that being a first time home buyer some with many choices and lots of ups and downs but the process itself can be truly rewarding and very educational as well. At JZ Mortgage Services, Inc, in Bradenton, we want to make sure we are here for you from the first step to the last, so don’t hesitate to reach out today.