There are many questions that come purchasing your first property, especially when reviewing and selecting your first time home buyer loan. When you are new to this process, you will likely have difficulty discerning how to start researching for your mortgage, which loan will be the best for your circumstances and how to qualify for it. As a result, mortgage companies in Georgia will work closely with you to find the right financing to get you into your first house.
At BrightPath, our experienced loan officers will provide you with the affordable financing you need to get you into your ideal home.
What are First Time Home Buyer Loans?
According to mortgage companies in Georgia, first time home buyer loans are programs that afford lower down payments to give novice buyers with less savings the opportunity to purchase their first property. Depending on the mortgage, the down payment will be anywhere from 3-5%, which is much lower than the usual 20% down payment associated with conventional loans. In some instances, these programs will come with mortgage insurance options that can be tailored to fit your needs.
The Advantages of First Time Home Buyer Loans
Mortgage companies in Georgia recommend first time home buyer loans to new purchasers because of their many benefits. Along with the lower down payment, lenders may be more willing to cover closing costs and other fees related to your mortgage. If you do not have a credit history or suffer from a lower credit score, first time home buyer loans are more accepting of alternative credit histories that have a proven track record of timely utility, rent and insurance payments.
Researching Your Loan Options
When attempting to choose the best first time home buyer loan for your finances, it is important to explore your options. In many instances, FHA loans will be the most advantageous for your circumstances because they are supported by the government, so your lender will offer you better terms since they will not be liable if you default on the mortgage. FHA loans also have lower down payment requirements, so you can pay as little as 3.5%.
If you are searching for a home in a rural area, a USDA loan may be the better selection for you. Offered by the U.S. Department of Agriculture, they finance the entire cost of the home, do not require a down payment and roll closing costs and fees into the mortgage. If you are a current or former member of the military, you should pursue a VA loan. Provided by the Department of Veteran Affairs, this mortgage has lower closing costs and no down payment, offers higher limits than those afforded by FHA loans and does not require mortgage insurance, so you have the potential to save a lot more money compared to other loans.
Considering the Loan Terms
Mortgage companies in Georgia also recommend that you evaluate the terms for your first time home buyer loan when weighing your decision. You should think about the amount of time you plan on living in your first property. If you are going to be there less than five years, an adjustable rate mortgage will afford you reduced monthly payments because you can sell before the introductory rate rises. However, if you plan on living in your house long term and are attracted to the stability of payments that do not change throughout the life of the loan, you should get a fixed rate mortgage.
Work with BrightPath to Find the Best First Time Home Buyer Loan to Meet Your Goals
Each first time home buyer loan comes with its own set of advantages, challenges and criteria that must be met to be eligible. As a result, you should work with the experienced loan officers at BrightPath to evaluate your options and shop for the best mortgage to meet your goals. With their specialized skills and unparalleled professionalism, they will find you the loan that will make your desires of becoming a homeowner a reality.
Contact us today to schedule your consultation.
When you work with BrightPath, you are guaranteed to be working with one of the best mortgage companies in Georgia.