3 Time and Money Saving Tips for First-Time Homebuyers

3 Time and Money Saving Tips for First-Time Homebuyers

03/03/2021 | Home Buying

3 Time and Money Saving Tips for First-Time Homebuyers

A range of decisions and emotions go into purchasing the place you’ll make your own and call home for years to come. 

Particularly if you’re buying your first home, all the details involved can add up to create an overwhelming experience. When you’re making one of the biggest financial investments of your lifetime, it can be easy to overlook some of the challenges and opportunities presented along the way.

Whether you’re getting ready to take the initial steps toward buying your first home, or are already headed down the path to home ownership, keeping these tips in mind can lead to significant time and money savings:

1) Research benefits for first-time home buyers

There’s a wide range of programs and grants available, many of them government-supported, that are specifically designed to help first-time homebuyers overcome the financial hurdles that can come with purchasing a primary residence. These benefits can be especially helpful for lower-income homebuyers who are looking to break out of the rental cycle.

Among the most popular federal resources—all of which can help lower down payments and closing costs for buyers who meet program requirements—are:

USDA Loans

Intended for rural and suburban homebuyers, these loans -supported by the U.S. Department of Agriculture- can help borrowers who might have trouble getting a traditional mortgage secure a low-interest mortgage, sometimes with the option of no down payment.

Visit USDA Website

VA Home Loans

The most popular first-time homebuyer program for qualified veterans and active-duty service members, these loans-guaranteed by the U.S. Department of Veterans Affairs- help U.S. military veterans, active-duty service members, reservists, and surviving spouses purchase homes, with flexible terms and low to no down payment.

Visit VA Website

FHA Loans

Insured by the Federal Housing Administration, these loans can allow for down payments of as low as 3.5% of the purchase price (for homebuyers with sufficiently high credit scores), in addition to keeping closing costs low.

Visit HUD website

In addition, many local programs and grants can provide additional help. To learn more about the local resources that might be available in your area, refer to the Department of Housing and Urban Development (HUD).

With such a wide range of programs and grants available, it’s wise to discuss your specific situation and needs with a knowledgeable professional, such as your real estate agent or a member of the United Bank mortgage team, to make sure you’re not overlooking any options that could help with your purchase.

 

2) Identify the best mortgage fit for your needs

The best mortgage option for your home purchase can vary widely, based on your specific situation and needs. For example, while the consistency of a fixed-rate mortgage might be best for a relatively rooted homebuyer with school-aged children, a single person who is likely to be moving in the near future might benefit from the lower initial rate offered with an adjustable-rate mortgage. 

Likewise, while a USDA Rural Housing Loan may be available to a qualified buyer of a home in a rural area, the qualified buyer of an urban property might be better served by seeking out an FHA Loan.

 

3) Get prepared for the application process

Lenders will need a variety of information from you to begin the loan-approval process, most of it related to your employment and income. You can get a jump-start on the process by collecting documents such as your recent bank statements, pay stubs, W-2 forms, and tax returns, so that they’re readily available when requested. 

If you’re still in the earliest stages of the home-shopping process, you also can take steps to improve your credit score, which can increase your chances of being approved for a loan.

At United Bank, we strive to make the mortgage-application process as simple and straightforward as possible. It all starts with reaching out to our mortgage team, or filling out our easy online application form. From there, one of our knowledgeable mortgage loan officers can help you find the best loan option for your needs, then continue to work with you every step of the way on your home-buying journey—through closing day and beyond.

 

Learn more about how United Bank can help you with a mortgage loan that fits your needs.

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ADVERTISING NOTICE – NOT A COMMITMENT TO LEND – SUBJECT TO PROGRAM AVAILABILITY. All loan applications are subject to credit and property approval. Annual Percentage Rate (APR), programs, rates, fees, closing costs, terms and conditions are subject to change without notice and may vary depending upon credit history and transaction specifics. Other closing costs may be necessary. Flood and/or property hazard insurance may be required. To be eligible, buyer must meet minimum down payment, underwriting and program guidelines.

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