A Simple Guide For First Time Home Buyers
Getting Started
Many people buying their first home are afraid lenders don't really want to work with them. But that's simply not true. Without you, there would be no mortgage lending business. Lenders want to help you buy your first house!
I really want to own my own home, but I'm not sure I can afford it. Where do I start?
Lots of people don't even consider buying a home because they're afraid they can't afford it. But for most people, home ownership is within reach - especially with some of the special programs for first-time home buyers. In fact, for many, home ownership is as affordable as renting in some cases even more affordable.
The best place to start is with a mortgage lender affiliated with the Mortgage Bankers Association of America; a lender can help you explore all the options of home ownership.
How do I know how much house I can afford?
Before you start looking at homes, you need to have some idea of what you can afford. As a general guide, you can purchase a home with a value of two to three times your annual household income, depending on your savings and debts. However, you may be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value.
If you'd like to know more exactly how much you can afford, talk to a mortgage lender. If you're working with a real estate professional, he or she can help you with this, too.
When should I talk to a mortgage banker?
The short answer: when you start thinking about buying a home. It's true you can't actually apply for a mortgage until you've chosen your home and signed a contract to buy it. But you shouldn't wait until then to start talking with a mortgage lender.
Any reputable mortgage lender will be happy to help you as you look for a home. The lender will work with you to determine how much house you can afford, help steer you to special mortgages for first time home buyers, and perhaps make suggestions that could make it easier to get the best mortgage for you.
Another advantage: you'll already have a good relationship with a lender when it comes time to apply for your mortgage.
- Page 1 - Getting Started
- Page 2 - How to Make Your First Meeting Work
- Page 3 - First Class Help for First Time Buyers
- Page 4 - Applying Yourself
- Page 5 - The Low-down on Loans
- Page 6 - How to Choose Your Lender
- Page 7 - Fifteen Commonly Used Mortgage Terms
- Page 8 - About the Mortgage Bankers Association of America
