The prospect of buying your first home can be both exciting and frightening. Putting down a large cash down payment, that may be most or all of your savings, is enough to make some people sick to their stomachs. However, becoming a homeowner is more than enough incentive to carry through with the transaction.
Qualifying for a Home Loan
When you’re looking at homes for sale in Houston, TX, there are few things you can do to help yourself qualify for a home loan if you are a first time home buyer. If you plan to be in the market for a house in the near future, you should keep an eye on your credit score. If you are applying for a home loan at a bank, your credit score will be one of the determining factors for securing a loan.
You can maintain a good credit score by keeping your credit card balances to a minimum and make your payments on time. It isn’t necessary to keep your balances at zero as long as your balances are moderate and you are keeping up with your payments. In addition, if you find discrepancies on your credit history, you need to dispute them and try to clear them off your record.
Get Housing Counseling
Before you start looking into homes for sale in your preferred neighborhood, find out if you can qualify as a first-time home buyer and what type of loan programs for which you may qualify. There are housing counseling agencies funded by the United States Department of Housing and Urban Development that can help answer any questions you may have about buying a house for the first time.
Along with advice on your qualifications as a first-time home buyer, they can also help you address any concerns you may have about a down payment or any credit issues. You can go onto the HUD website and find agencies that can help answer your questions in your state.
Other Lending Options
The bank where you have your checking or savings account isn’t your only option for a home loan. It can be much harder to qualify for a home loan through a bank when you are looking at homes for sale. There are federal and state programs you may qualify for that can help you get a first-time home buyer’s loan. Several of these programs require much smaller down payments than you would get through your bank. You should carefully consider these options when buying your first home.
Before you start looking for homes for sale, make sure your credit history is in order and consider all your options before applying for any home loans. You could save money with alternative loan options.
