First Time Home Buyers
Superior Mortgage Lending specializes in First Time Home Buyers
We are here to educate borrowers and lead you to the first step to becoming a homeowner. At Superior Mortgage we make your Dream Home Work For You! The process is easier, faster and smarter than you might think.
Most people turn to their local bank for a home loan, rather than an Independent Mortgage Broker. What you might not know is that a Mortgage Broker is often the best choice and they are able to offer you more Loan Options than a bank. Let us show you The Easy Way Home!
A First Time Home Buyer is an individual who meets any of the following criteria: An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).
First-Time Homebuyer Mistakes to Avoid:
- Assuming you won't get approved for a mortgage
Ideally, you'd like to have as little debt as possible, an impeccable credit score, and a 20% down payment before borrowing money for a home. However, even borrowers with less can get loans in today's market, thanks to options like Federal Housing Authority loans, which are meant to help out low-income and first-time buyers.
Don’t have a big down payment? We have lower Down Payment Options
- 1% Down Payment – Dreaming of Owning Your Own Home? You’re 99% There
- 3% Down Payment – Don’t Waste Money On Rent When You Can Afford To Buy
- 5% Down Payment – 10% Down Payment – 20% Down Payment – also available
- Not getting pre-approved early on
Getting pre-approved for a mortgage serves two important purposes: First, it gives you a realistic understanding of how much you can spend on the house. Second, it shows sellers that you're serious and gives you slightly more standing if you're competing for homes with all-cash buyers.
Make it less stressful by gathering up relevant financial documents like bank statements, tax returns, and pay stubs, and by checking your credit report for errors in advance.
- Maxing out your mortgage limit
Just because a lender says that you can borrow a certain amount, doesn't mean you should borrow that much. Staying below that limit will give you more financial flexibility to cover the added expenses that come with purchasing a home,as well as long-term changes to your income.
- Letting your emotions control your decisions
Buying a home can be a long and frustrating process. These days, starter homes go quickly, and it's common for first-time buyers to experience rejection on the first offers they make. In that kind of environment, it's easy to fall in love with a house that's out of your budget, or get caught up in the heat of a bidding war and end up paying more than you expected.
- Waiving contingencies without understanding the risks
In highly competitive markets, it's becoming increasingly common for buyers to make offers that aren't contingent on financing or inspection. While waiving contingencies can make your bid more desirable to a seller, it can make the transaction much more risky for you. Have a conversation with your realtor and a lawyer before opting out of contingencies in your contract. In a worst-case scenario, you may end up losing your deposit.
- Allowing your credit score to change before the close
A pre-approval letter is not a guarantee of funding, and if your credit score or income levels change drastically between the pre-approval and the closing of the loan, lenders may change their terms or rescind the offer entirely. While you're home shopping, be sure to pay all your bills on time and steer clear of new credit accounts, even if that means you have to wait to pick out your furniture. If possible, try not to switch jobs until after you close, particularly if you're moving into a new industry.
