You’re finally ready to take the plunge and revel in the independence owning a home provides — no nagging landlords, the ability to flex your creativity and a backyard for your pups to romp around in. The emotion of being a first-time homebuyer is truly a one-of-a-kind feeling, but before you officially add homeowner to your resume, you must secure a home loan.
Taking on homeownership is probably the largest financial investment you’ve made yet and there are several things that’ll help you prepare for this endeavor. To begin with, you’ll need to know your credit score, establish a budget and determine your debt-to-income ratio based on your monthly income and expenses. Once you’ve gathered the necessary information, it’ll be time to get prequalified* for a home loan. By prequalifying:
- You’ll know exactly what your price range is – this will save you time and heartache as you’re able to narrow your search
- If you’re lucky enough to fall in love with a home at first sight, you can make an offer that same day
- You’ll be more attractive to the seller as they anticipate fewer delays and you’ll have stronger negotiating power over a buyer who isn’t prequalified
- With the red tape removed, a real estate agent can move quickly knowing you’re prequalified and eager to purchase
Everything falls into place – you’ve found your dream home and the seller accepts your offer! Now what? You’ll need to apply online, in person or by phone with a PrimeLending Home Loan Expert. No matter which method you choose, a PrimeLending loan officer will council you through our streamlined, hassle-free process to find the perfect loan for your situation and answer any questions – all of this to ensure you’re able to settle into your dream home quickly.
After you apply for your home loan, we’ll determine the property’s value through an appraisal, review all documents before locking your interest rate and schedule the long-awaited closing – before you know it, you’ll be celebrating signing the paperwork from your new home!
The entire process typically takes less than 30 days. While it may seem daunting at first, a PrimeLending loan officer will guide you through every seamless, simple step. Our purpose is straightforward, to help you navigate this process and ensure you have a rewarding, stress-free experience.
Popular loan options for first-time homebuyers:
FHA – An FHA (Federal Housing Administration) home loan is backed by the government and offers lower down payment options, flexible income and credit requirements and low closing costs to help first-time homebuyers, seniors and others with financial limitations.
VA – If you’re a qualified veteran or family member, VA loans offer benefits such as no down payment, no private mortgage insurance (PMI), possible VA assistance, higher loan value and much more, as VA loans are backed by the U.S. Department of Veterans Affairs.
USDA – A USDA Rural Development Guaranteed Housing Loan Program loan is guaranteed by the U.S. Department of Agriculture and offers financial assistance to people wanting a home away from the city. A USDA loan offers no down payment, low interest rates, low PMI payment and flexible credit qualifications.
*A prequalification is not an approval of credit, and does not signify that underwriting requirements have been met.