Purchasing your first home can be both exciting and stressful if you don’t know what to expect. Here is some helpful information on what should first time home buyers know that could help you in the process of purchasing a new home. This could put you in the power seat so you can be in charge of your future.
It’s important to be aware of the additional costs that come along when you purchase a new home. Once you are under contract to buy a new home, you’ll be asked to provide a down payment, which can be as much as 20% of the cost of the home. It’s wise to save in advance when you are considering purchasing a home.
Do you know your FICO score? Banks factor in your creditworthiness when they are approving your loan. You should review your credit report for any errors and to obtain your FICO score.
If you do not qualify for a conventional loan, there are FHA mortgages available. FHA mortgages allow for borrowers with less than the minimum FICO score to get a loan. Still having trouble getting a loan? DRB Capital may have another option, read on.
Consider meeting with a reputable mortgage lender who will review your credit and verify your income and assets. Typically, the lender will then come back with a pre-approval of the amount of credit they are willing to lend you for your new home. Although it is not necessary to obtain a pre-approval, finding out the size of a mortgage you qualify for is a helpful guide when you start your home search. You should enjoy your new home and be comfortable with the mortgage payments.
There are additional costs, above and beyond the actual sales price of the home, that could be taken into consideration if you want to be able to budget accordingly.
But wait, you have other options! If you have a structured settlement or annuity you may be able to sell your future payments to a trusted partner like DRB Capital. DRB Capital may be able to get you the cash sooner than if you were to go through the lengthy loan process! To learn how we can help you get cash for your first home sooner, please call us at 877-894-4541.