Real Estate · May 22, 2019

2 Great Facts You Must Take Down If You Want the First Time Home Buyer Loans

Are you trying to make an investment in the real estate? It is important that you should make a little investment which can reap you great benefits later on. And since real estate is such a lucrative area, you are bound to benefit from this. But first of all, you have to make sure that you have purchased the right real estate property. Apart from the space, the neighborhood, and the other amenities, one of the crucial factors that one has to consider while investing in the right property is the budget. You have to make sure that you have the funds to finance your new home in order to secure financial benefits from it later on. But the problem lies there. You might not have enough savings to finance your house from there. That is the major reason why people are resorting to home loan programs in order to get their dream home. If you are a first time buyer, then you might get some amazing options for the first time home buyer loans. And if you are a veteran or your spouse has been one, you could be lucky enough to be eligible for a VA loan. So, your dream home can be a great investment if you can gather the requisite funds for it.

These loan programs are amazing options for you because these have low credit score requirements and you can get these with a down payment which has no restrictions on its source. But even after knowing these factors, you might have a few things to keep in mind. So, here we have made a list of facts to keep in your mind regarding these first time home buyer programs in Houston. Take a look.

  • Lender Approval

All of us are aware that there is a particular process that one needs to adhere to while applying for a loan. And you need to be eligible for the particular loan you are applying for. There are certain factors that you need to fulfill in order to get the loan. But those are something that you already know since you are considering to get these first time home buyer loans. But in this scenario, you have to understand that your lender should also be approved. If you are opting for the first time home buyer programs such as the FHA loans backed by the Federal Housing Administration, you have to focus on the lender’s approval. Well, since these are supported by the federal housing administration, you need to get the lender approved by them. So, check this before taking a decision regarding your home loan.

  • Mortgage Insurance

Another very vital thing that you have to keep in mind because you are applying for a home loan is the mortgage insurance. You need to make sure that you take into account your mortgage insurance while applying. For the FHA loans, you need to make an upfront premium of about 1.75% and you need to pay this to your lender just after getting the loan. It could also be financed as a part of your loan. The next thing that you need to consider is the annual premiums but it is usually paid on a monthly basis. This will vary depending on the amount you have taken as a loan, the initial loan-to-value ratio, and the duration of the loan. But make sure you keep this in mind while planning to take a home loan.

The first time home loans are one of the best options in home loans for low credit scores in Houston. So, if you are interested, take these facts down and start hunting for the right loan program and its lender.

Author Bio: Joan Gallardo, a Senior Loan Officer with 18+ years of experience, writes on a few facts to remember while opting for the first time home buyer programs in Houston. Check his blogs to know about the other home loans for low credit scores in Houston.