First Time Home Buyers
Confused? Don’t Worry. We’ll Guide You!
Buying a home can be overwhelming but mortgage financing is even more stressful. At First Vision Real Estate & Financial Services, we will help make that process simple and easy.
Here at First Vision Real Estate & Financial Services, we can help you secure financing for your dream home. We will hold your hand and guide you all the way.
How to get started with First Vision Real Estate & Financial Services?
Let’s get you pre-qualified now.
There are many loan programs available to you such as conventional, USDA, FHA, VA, Non-traditional Mortgage programs.
Here’s a list of basic documents needed to get pre-qualified for a mortgage:
- Federal Tax Returns
- Bank Statements
- Pay stubs
- Proof of Funds
- Credit Report
- Driver’s License
For Self-Employment Mortgage programs:
- Bank Statements (Business and Personal)
- Business Federal Tax Returns
- CPA Letter
- Profit and Loss
Now, with this basic information let’s contact a First Vision Real Estate & Financial Services Professional to start the pre-qualification process.
Home Buying Guide from First Vision Real Estate & Financial Services
Consider these services before choosing the best mortgage company for you.
The services First Vision Real Estate & Financial Services Company provides include:
- A credit report analysis
- Personalized strategic mortgage planning
- Sound underwriting advise
- Shopping competitive rates and loan programs
- In-house loan processing
- Daily updates on your loan status
- Timely closing
Loan Options to Consider as a First Time Home Buyer:
If you are a first home buyer, you are in a great position to take advantage of the special programs to help you buy a home.
- Do you need to secure a fixed monthly payment? A 30 Year Fixed Loan Program may be your best option. The interest rate is guaranteed to stay the same over the life of the loan, this means that your monthly payments will stay the same making it easy for you to plan and budget.
- Don’t have a lot of funds saved for down payment? An FHA Loan allows a minimum of 3.5% down payment as a first time home buyer and with a FICO Score as low as 580, you can secure a loan for your new home mortgage.
- Thinking of being in your first home less than seven years? An adjustable-rate mortgage may be the best way to go. This allows you to start at a lower interest rate, lower payments to fit into your plan and a lesser chance that you will overpay for your home.
- Are you a veteran or currently serving in the United States Military? A VA Loan allows you to purchase a home with 0% down payment, no private mortgage insurance, competitive interest rate and lifetime benefits
- Do you need a down payment assistance loan in rural areas? USDA offers 0% down payment, lower-than market interest rate, low monthly private mortgage insurance and flexible credit guidelines.
- Are you Self-employed with limited documentation of income? Non-Qualified Mortgages may be right for you. It offers higher loan limits, lower credit scores with recent or late credit events, CPA Letters and proof of bank statements are all welcome.
Frequently Asked Questions by First Time Home Buyers
Q: Should I talk to a mortgage broker before looking at homes?
A: Talking to a mortgage broker before looking at homes helps you understand exactly how much you can qualify for. There’s no reason to look for a home more than what you can afford.
Q: Should I buy or continue to rent?
A: Buying a home can be a solid investment. Equity built overtime can be go towards other investments and income tax benefits with pride of ownership
Q: I own a home, should I buy another before selling my current home?
A: The biggest benefit to buying a home before selling your home is the fact that you have another home to move to which reduces the stress of not having a place after selling.
Q: Does my credit score impact my ability to buy?
A: Your credit score numerically summarizes an individual’s credit history and gives a snapshot of their financial standings to a lender. Mortgage lenders use the score to decide who receives these loans and at what interest rate. Higher credit score means the better the chance of getting the mortgage with better interest rates. Lower scores may result to higher interest rates and reduce your chances of getting a mortgage.
Q: If my credit scores are low, how do I fix it?
A: It is not impossible to get a loan with a low credit score but may take a little longer since you may have to work to improve it. There are 3 different credit bureaus that keep credit history namely Equifax, Trans-Union, Experian. Before applying for a loan, get reports from all 3 companies. Fix any issues you may see to improve your credit score to get a better outcome.
Q: What are the homeowners tax benefits?
- Typical deductions are mortgage interest and real estate taxes
- In most cases, loan discount points and origination fees
- Read publication 530 titled Tax Information (Hyperlink) for homeowners found on the IRS website
Q: What is the difference between pre-qualified and pre-approved?
A: Pre-qualifications – Getting pre-qualified for a mortgage gives first time home buyers an indication of how much they might qualify to borrow. This mortgage amount is not guaranteed because no information has yet been verified. A letter from the lender may only state that you are likely to be approved for a mortgage.
Pre-approval – Getting Pre-approved for a mortgage, you have to submit financial information to a mortgage lender such as proof of income, assets, most recent tax returns, outstanding debt and employment status. Once submitted, the lender will usually access your credit report with your scores and review it for any red flags.
Q: How do I get the best mortgage?
A: It can be very time consuming to learn about various rates and terms of mortgages. After you have identified your dream home, there may not be enough time left to do your research. Do your due diligence and homework before searching for your dream home. Here are a few tips:
- Contact the Better Business Bureau (Link) to make sure that you are working with a reputable mortgage lender.
- Use National Association of Mortgage Brokers to find a mortgage broker that can help you shop for the best mortgage, First Vision Real Estate & Financial Services is here to help you
Q: Are you a Veteran?
A: You might be eligible for a VA (Veteran Administration) Assistance. Visit the U.S. Department of Veteran Affairs.