By Julia Schulte – Re-Blogged From 5280 Lend
Help for the Denver First-Time Home Buyer
[Though the author is based in Denver, the information is very elevant wherever you are located. -Bob]
If you are a first-time home buyer, you are no doubt experiencing a lot of doubt and stress about the process. Purchasing a home is a big financial commitment, and, most likely, the biggest you’ve ever faced. There’s a lot of information out there, and you want to make sure you get the best available deals and rates. What’s a good way to make sure you do that? Enlist a reliable and experienced resource. 5280lend will be your “Tour Guide!”
The most popular option that specifically appeals to the Denver first time home buyer is an FHA loan. FHA loans are insured by the US Federal Housing Administration. Although you do not have to be a first-time home buyer to qualify for an FHA loan, this type of loan is extremely popular among first timers, largely because it requires a significantly lower down payment. The opportunity for a low down payment can be extremely helpful to those who are just starting out.
Another advantage of an FHA loan is the relaxed credit and job history requirements. Since this loan type is specifically structured for new homeowners, the underwriting requirements are much more forgiving making your likelihood of approval much greater.
If the home you are considering is in need of repairs, an FHA loan might suit your needs well. FHA loans offer a renovation program that will allow you to borrow a bit of extra money to bring your home up to the standard you wish to see.
“Conventional” loans are another choice for first-time homebuyers. A conventional loan is another loan type that is NOT specifically insured by HUD. These loans are generally very popular too because they offer very favorable terms and costs. The trade-off for that is that the credit and underwriting requirements are slightly more restrictive than FHA loans. If your credit scores are good and your job stability is good, this might be the loan for you!
5280lend can help you compare loan types to determine which option is the right choice for you.
Tips for the First Time Home Buyer
5280Lend encourages Denver first time home buyers to keep the following in mind as you search for the right loan:
- Consider your credit score. If it isn’t what you’d like it to be, there may be some quick steps you can take to improve it before applying for a loan. Re-organizing how you are carrying certain debts might help to boost your credit score.
- On a related note, do not open any new credit card accounts at this time. Even if you don’t carry debt on a new card, simply opening the account could have a negative impact on your credit report.
- Be smart about purchasing. It’s easy to fall in love with a home that’s outside your price range and convince yourself that you can borrow a little more than you had originally planned. A great idea is to commit to your budget before you start viewing properties, and only look at homes within your price range—you’re likely to find something you love that you can afford!
- Choosing a Real Estate Agent, a Homeowner’s Insurance Agent, an Inspector and other related professionals is another potentially complicated task. We have some great connections to people who have great experience and excellent knowledge of the metro area. Putting a good team around you can make a tremendous difference in whether this investment becomes your first stepping stone to homeownership or a set-back that can cost you a lot of headaches and money. Ask questions. Your team at 5280lend is ready and able to help you every step of the way.