Home Buyer Resources

Information and Resources for First Time Home Buyers

Check Your Credit Report and Score

Before you start applying for loans, check your credit report and score to find any blemishes you may have. From there, you can work on fixing those blemishes to help get you a better interest rate. You can check your credit report for free at www.annualcreditreport.com.

Know the Difference Between Loan Pre-Qualification and Loan Pre-Approval

Loan pre-qualification is a best guess at your housing and loan affordability. Pre-qualification is typically based upon a verbal conversation between potential borrowers and a lender and doesn’t include formal underwriting or supporting documents. A loan pre-qualification is not a commitment to lend. Loan approval comes after a formal underwriting of a potential borrower’s loan request. Loan approval is achieved with a complete mortgage loan application.

What Do Lenders Look for When Determining Loan Eligibility?

Generally lenders look at several things:

Your income
Your down payment or equity
Your credit history or credit score
Your debt-to-income ratio
How much money you have saved
The property you plan to purchase

Be Prepared for Closing Costs

Closing costs are all the different charges that you’ll be required to pay at or before the closing. They include charges related to the purchase of your home, and charges related to getting a mortgage.

Various Types of Mortgages

Conventional Mortgage:

30 year fixed-rate
Interest rate never changes
Lower monthly payment than with shorter-term loans

FHA Mortgage

Allows for down payments as low as 3.5%
Credit scores as low as 500 can qualify
Mortgage insurance premium payments are required
Popular among first-time homebuyers

VA Mortgage

No down payment required
Upfront VA funding fee required
No mortgage insurance
Military-qualified borrowers may qualify

For more information about mortgages, please contact your bank or a financial institution.