Anytime you are doing something for the first time, it is natural to have a little trepidation. The more complicated the task, the more anxious you might be. However, while some nervousness is natural, too much is unhealthy. This is especially true when it comes to first-time home buyers. It’s reasonable to be cautious as a first-time home buyer. After all, for most Americans buying a home is the largest purchase you will ever make. But at some point, too much fear will cause you undue stress and might psych you out of making one of the best financial decisions you could ever make. Buying a house is a big deal, but if you do it armed with the right knowledge and the right support, you have nothing to fear. The team at Peoples Choice Mortgage is here to give first-time home buyers the tools you need to be fearless.

Tips for First-Time Home Buyers

Many first-time home buyers are intimidated by today’s real estate market. First, there is the fact that home prices have soared to all-time highs. Second, first-time home buyers are worried about having to face tough competition from other home buyers. Third, many first-time home buyers are not confident in their own financial situation. Some do not know how they are able to qualify for a mortgage given that they have a lot of student loan debt. Others are worried about whether or not they can qualify with a mortgage with their credit score. No matter your concern, it is important to understand that everyone can buy a home with a little coaching, work, and patience. To that end, here are some important tips for first-time home buyers that will help you purchase the house of your dreams. 

Do Not Disqualify Yourself from a Mortgage

Do not make the assumption that you will not qualify for a mortgage or that you cannot buy a house. There are hundreds of different lenders with thousands of different mortgage products. Regardless of what credit score you think you need or how much of a down payment you think you need, chances are that you are closer to qualifying than you would imagine. If you want to buy a house then you should try to buy a house. Even if you cannot qualify for a mortgage today, trying will give you a much better idea of specific steps you should take to qualify in the future. 

Find a Professional and Trusted Mortgage Broker

Finding a quality mortgage broker can make all the difference when it comes to your first-time home buying experience. They are able to let you know about the lenders, mortgage products, and homebuyer programs that can help you and your specific situation. Working with a mortgage broker provides many benefits over trying to get a loan with a specific bank or one of those online warehouse loan providers. First, mortgage brokers can give you access to hundreds of lenders, which is what you would get from those online mortgage sites. Unlike those online sites, your mortgage broker acts as a single contact that will guide your loan process. This prevents you from getting spammed by lots of lenders. Second, mortgage brokers are your personal advocates and will help you through the whole process. This gives you the personal touch you desire from your personal bank. 

Improve Your Credit Score

The truth is that you do not need as high of a credit score as you probably think you do to get a mortgage. There are some programs, such as VA loans or FHA loans that will let you get a loan with credit scores in the 600s. However, credit scores greatly impact the interest rate of your home loan. Improving your credit score can happen relatively quickly and can save you thousands of dollars over the course of your home loan. Make the decision right now to improve your score where you can. 

If you need help on what steps you can take to get the impact bang for your buck, speak with your mortgage broker. At Peoples Choice Mortgage, we help every one of our clients with credit enhancement. It is quite common for our clients to improve their scores enough from when they first apply for a mortgage to when they close that they end up getting a lower rate than initially quoted. 

Save for a Down Payment

Unless you are getting a VA loan or a USDA loan, you will be required to pay a down payment. However, you do not need as much of a down payment as you think you do. One of the biggest myths that first-time home buyers have is that you need 20% for a down payment. That is simply not true. There are lots of mortgage products available that require as little as 3.5%. Even saving small amounts now can quickly add up to giving you what you need for a down payment. 

Final Thoughts

Buying a house can be intimidating, especially for first-time home buyers. However, having some knowledge about the process can help you buy the house of your dreams with confidence. Working with a professional mortgage broker can also help you simplify this process. Real estate is complicated and it is hard to learn all the ins-and-outs of the home buying process on your own. Having a trusted mortgage broker on your team can give you access to all the tricks and tools that will make your life easier. 

If you are a first-time home buyer and you want help buying the home of your dreams, but do not know where to start, contact us. The professionals at Peoples Choice Mortgage will help you find a mortgage that fits your needs and your wallet.