How to get a Home Loan: a first-time buyers guide

Buying a home for the first time can be intimidating. Amerifund Home Loans is here to make it easy.

This guide will give you a better understanding of your options and which home loan is right for you.

  1. Applying for a loan
  2. Get a real estate agent (or be your own)
  3. Popular loans for first time buyers

Applying for a Home Loan

If you are planning on buying a home soon, there are a few things you should do before anything else. The first is to apply for a home loan and get pre-approved. You are probably thinking , “I don’t even know where to start.” Here are some advantages to getting pre-approved for a home loan before house hunting:

  • You will understand exactly how much you can afford; therefore, you will not waste time looking at homes that are outside of your price range.
  • You will be in an extraordinarily strong place to make an offer on a house because the home seller will know you have the resources to buy.
  • If your offer has been accepted, there will be less snags down the road which could slow down the loan process.

Lenders will review your credit, your income, and your assets. Having good credit will help you qualify for the best interest rate available. Lenders will also want to review your income so that they can make sure you will be able to afford a monthly mortgage payment. Often, lenders look at your debt to income ratio just to make sure that the amount of debt you have is affordable in comparison to your overall income. Finally, your assets are something that you can use to liquidate into cash if necessary. This can often be a checking or savings account, stocks, and other personal property.

Get a Real Estate Agent

A real estate agent can be a wealth of knowledge when it comes to buying a home. Most real estate agents have a lot of experience and you can expect your agent to help you find the perfect house for you in the right area. They will also help you manage all that pesky paperwork. And finally, a good real estate agent will help you negotiate with the sellers.

The real estate market is one of the last industries to be disrupted by technology. Nowadays, the Internet allows many buyers to represent themselves, as well as sellers who wish to sell their own home.

Popular Loans for First Time Buyers

Every buyer has their own unique set of circumstances which will dictate which loan will be best for them. Below you will find questions asking about different lifestyle situations which might help you pick the perfect loan for you.

  • Are you a currently serving member of the military or veteran? VA loans are a great loan option for veterans and often require No Down Payment.
  • How long do you think you’re going to be in your first home? If less than 5 years an ARM or adjustable rate mortgage might be a good option for you. Some ARM loans have lower introductory rates and monthly payments for the first few years of your mortgage.
  • Do you have challenging credit or a limited credit history? An FHA home loan might be your best option as it does not require a large down payment and tends to be easier on credit an income requirements.
  • Are you looking for a fixed regular monthly payment? A 30 year fixed Conventional home loan will probably be your best bet. You’ll pay your home loan over a thirty year period and your interest rate and monthly payments will never change. Some Conventional loan options allow for as little as a 3% down payment.

How should I choose a Mortgage / Home Loan company?

Not all home loan companies are created equal! Here are some good questions to ask to help decide which home loan company to go with:

  • What is the best way to communicate with you (Phone? Text? Email)
  • What are your working hours?
  • How long does it usually take your company to close a home loan?
  • Do you have any reviews online that I can look at to help make my decision?

If you need fast, highly rated personal service from experienced professionals, call the team at Amerifund. We specialize in first-time homebuyers and we’ll walk you through the entire process. Here are some of our actual client reviews:

“A stress free and easy process. Amerifund was amazing getting my first mortgage. They talked me through everything and were quick and attentive throughout. I’d definitely use them again any day.”

Brad and his team are great professionals and make the client experience simple and easy. “

“The Amerifund team made my first home purchase exceptionally smooth. Every question answered, every page covered, all communication timely and professional, escrow open-close in 30 days … so quick and painless, I almost forgot I was actually buying a home.”

Amerifund is the ABSOLUTE best choice for your home loan needs.”

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