This is a huge step in your life and you need to cover all your bases so that you don’t make a large mistake that could cost you thousands or keep you out of your home. Make your first time home buyer mortgage loan process that much simpler by obtaining a pre-approval. Getting a mortgage is an exciting and sometimes scary time. Because of a larger variety of mortgage loans available, first time home buyers may become easily overwhelmed with the home buying process. To begin the process, they too can just use an online quote service, but they need to be as prepared as possible.Today’s mortgage industry is very competitive.
Today’s mortgage market is very competitive compared to what it was just 10 years ago. There are so many options.Even without any federal programs, there are plenty of creative products being created in the conventional lending arena. This person can readily purchase a nice townhouse, with little or no downpayment through a first time home buyer mortgage program.What is a FHA loan?FHA stands for Federal Housing Authority. After the transaction has closed and the buyer takes possession of the home, the buyer has 90 days to get the contractor to complete all the work on the home.
Similarly, there are the wrong loans for the wrong people at the wrong time.
The new home buyer only has to come up with the other 3% to complete the transaction.WRONG!Remember I said creative products. Whoever ends up doing the appraisal will come to the house and measure the entire inside rooms and the overall condition of the inside? Also, it was much easier to just use FHA and a seller funded DAP. This money may come from your savings or from a gift from a relative. Often times a little bit of sweat-equity can have big payoffs. What happens if the seller doesn’t have the money?The seller may be planning on negotiating with one or more of the lien holders on his property. Instead, the seller issues a credit against the price of the home and the buyer agrees to pay the seller directly each month according to an upfront agreement. This means they want to lend you money!There is one problem though: Their money making strategy only works if you pay the money back. Make sure you take the time to look at all your options including fixed rate and adjustable rate options, FHA, VA and conventional style options, as well as other options you will find along the way.
Also, the increase in flexible loan products in the sub prime lending arena, were much easier to navigate. The First Time Home Buyer Stimulus Package is just such a program and worth the time it takes to learn all the details.Existing and brand new homes both qualify for the program. An assumption is the agreement between the buyer and the seller where the buyer takes over the payments on an existing mortgage from the seller. There is also a third option and that is to reserve the money as a home equity line of credit.Most any homeowner that is 62 can qualify for this type of financing option. The borrower is not paying for PMI, but is still making a monthly payment, probably for roughly the same amount as PMI. Private Mortgage Insurance is an insurance policy that protects the mortgage lender from certain losses in the event of foreclosure. Short SaleIn a short sale, the lender allows the homeowner to sell the house for less than the owed loan amount and write off the difference in price. What if mortgage re-financing were simplified?