Anew Lending List Down Home Buying Tips for First-Timers
Anew Lending offers some valuable tips about loans and financing for first-time homebuyers.
Buying a first house is an exciting and daunting experience. There is a lot of ground to cover between finding the right place, performing inspections, figuring out property taxes, and getting the correct insurance. That’s why when it comes to home financing, first-time homebuyers need a company they can trust.
Anew Lending is dedicated to making first-time homeownership viable. As Sacramento’s top-rated mortgage brokers, they offer home loans for residential properties, including
- Multi-family loans
- New home loans
- Refinancing loans
- USDA loans
- And more
Anew Lending aims to remove the complexity from home financing. To that end, their team is here today to talk about home buying tips for first-time homebuyers.
Home Buying Tips for First-Time Homeowners
Save for a Down Payment
The down payment is one of the essential parts of buying a home. Simply put, the more someone puts down for the down payment, the faster they can pay off their house and the less they will pay in interest on their mortgage.
Traditionally wisdom is to pay at least 20% for a down payment, though it’s possible to secure a mortgage with a 3.5% down payment. Homebuyers should consider creating a savings account just for their home’s down payment.
Know the Loan Terms Backwards and Forwards
Home loans are notoriously complex, and there are several different types. The main types of home loans include
- Conventional loans
- FHA loans
- USDA loans
- VA loans
Each type of loan has different terms and conditions. For example, FHA loans typically have lower credit requirements than conventional loans. Understanding all eligibility and payment terms is key to finding a favorable loan.
Boost Credit Score
Homebuyers need to improve their credit report and score to get the best possible loan terms. A typical conventional loan has a minimum credit requirement of 620, though it is possible to get a loan with a lower score.
The better the credit score, the better the interest rate borrowers receive. Borrowers can improve credit by paying off debts, making regular payments, minimizing credit usage, and boosting their debt to income ratio.
There is a lot of ground to cover between finding the right house, performing inspections, figuring out property taxes, and getting the correct insurance.
Don’t Forget About Closing Costs.
Many first-time homebuyers completely forget about closing costs. Typical closing costs are about 3%-6% of the home’s total value. Closing costs usually cover loan fees, escrow fees, attorney fees, title insurance expenses, and real estate commission fees. First-time homebuyers can receive federal grants to cover these closing costs.
First-time homebuyers need a company that will work in their best interest. They can also help avoid mortgage mistakes that a first-time might commit. Contact Anew Lending online or give them a call at (916) 226-9991 to discuss home loan applications.
