Did you know that some purchase programs have different guidelines for First-Time Home Buyers? Some programs are designed to make your financing more affordable because it is your first home. Other programs will penalize you because you have never made a mortgage payment, and limit your financing.
A good mortgage broker/lender will spend extra time with a first time home buyer to make sure you are comfortable with the process. Here are some things that a loan officer will specifically need to ask the first time home buyer.
- Is there rental history? How much higher will the mortgage payment be than the rental payments the borrower has been making?
- Is there enough available monthly income for the borrower to make the mortgage payment, pay for taxes and insurance, repairs as needed and still maintain their other obligations?
- What is the borrower's work history like? If the borrower is new is a recent college graduate, does their occupation relate to their field of study?
Some states and localities have specific assistance programs exclusively for first time homebuyers. If you qualify for one of these programs you might get a grant to pay for some or all of your closing costs or get reduced mortgage origination fees.
Work with a loan officer who knows the benefits and pitfalls that can accompany First Time Home Buyers. There are special programs out there for you, make sure your loan officer uses your first time buyer status as an asset, not a liability. Good mortgage companies works with first time buyers everyday, and understand the specific needs and challenges that accompany your first home purchase. It doesn't have to be a stressful process. Soon you can be on your way to owning your piece of the American Dream.
