| Realtors are saying that this is a great time for | | | | a buyer is considering purchasing a condominium. |
| first time home buyers to buy a home. Home | | | | Though many first-time home buyers can qualify |
| prices have fallen to the lowest level in years, and | | | | for conventional loans, more buyers will find that |
| in many cases you can now buy a home at prices | | | | FHA (Federal Housing Authority) financing might be |
| we haven't seen in the last 5 years. There are a | | | | the right fit. |
| lot of homes to choose from in the housing | | | | FHA is also a fixed rate loan and the pricing is |
| market and there is money to lend to qualified | | | | similar. A big advantage is that buyers only need a |
| buyers. Maybe you want to stop renting or | | | | 3.5 percent down payment and all of that can be |
| you've just married or you're finally ready to | | | | a gift. First time home buyers can qualify for an |
| move out of your parents' basement. In any | | | | FHA loan with credit scores under 740 and even |
| case, you've decided to purchase real estate, so | | | | down to the high 500s. So the FHA is a better fit |
| what's your first step? | | | | for most first time home buyers. |
| Before ever beginning to look at homes with a | | | | Becoming pre-approved for a mortgage and |
| Realtor, find out how much you can afford by | | | | knowing how much you can afford is the first |
| first consulting with a mortgage broker. The first | | | | step to becoming a homeowner. The key for |
| step is to gather up your documentation. You will | | | | First Time Home Buyers Loan is to talk with a |
| need one month of pay stubs, the last two years | | | | lender before they are ready to put in an offer, |
| of W-2s and two months of bank statements. As | | | | and not wait until their lease is about to expire. If |
| lenders, we need to be able to verify that the | | | | we have time we can coach the buyer, so if they |
| borrower makes enough money to be able to | | | | need to clean up some things on their credit, or if |
| pay back the loan. You will also need money for a | | | | they need to save for a down payment or figure |
| down payment. Typically, a down payment of at | | | | out how they can get the cash to close, they can |
| least 5 percent is needed for a conventional | | | | get themselves in shape and be ready to buy |
| fixed-rate loan and a 10 percent down payment if | | | | when the right house comes along. |