I can truly say from my own experience, buying your first home can be very “nerve wrecking”. Although it’s been over 18 years since I purchased my first home, I can remember the experience like it was yesterday. After going under contract, our lender must have asked us for the same documents at least 100 times. Ok, maybe I’m exaggerating a bit but it sure felt like it at the time. In fact, my husband became so upset, he said if they ask us for one more document, tell them we don’t want the house.
Of course we chuckle about it now, but we didn’t feel up to it back then. Not only did we go through a daunting loan process, we ended up having to bring $3000 more to closing than what was originally disclosed to us by the lender. Going into our first home with depleted savings, and to find out months later our home was eligible for the NO MONEY DOWN USDA First-Time Homebuyers Program did not give us the warm and fuzzys.
My first thought was…”Why didn’t our Realtor tell us about this program?”
From there, I began to do my own research and uncovered a whole world of homebuyer programs that a lot of realtors either don’t know about or choose not tell you about, unfortunately.
Once I became a Real Estate Agent I felt it was my duty to let buyers know about the different homebuyer options available to them. Needless to say I don’t know everything, but know enough and over the years, I have helped so many buyers save thousands and thousands of dollars! I believe if there are downpayment assistance grants available to homebuyers, then why not use them. Save your money for other things like… furniture, nice landscaping, home decor and not to forget that brand new welcome mat at your front door.
Here are a few tips I think will be beneficial for you as a First-Time Homebuyer on your way to homeownership….
1. Homebuyer Programs require a 640 credit score or above. However, there are lenders that can get you pre-approved to purchase down to a 580 score, but you will need your own down payment of 3.5%.
2. FHA Loan Program considers a First-time homebuyer someone who has not owned a primary residence in the past 3 years. However, there are other homebuyer programs that only require you not to own a home at the time of your closing.
3. Although there are homebuyer programs that require no money down, you will still need at least $1500 for your earnest money deposit & due diligence fee at the time of contract. Some New Home Builders will require a minimum of 1% deposit so please keep this in mind as well. $2500- $3000 in savings is good to have. The more money you can show whether in savings or 401k, the more the lenders will view you as someone good at budgeting. Lenders do not like for you to appear to be living from pay check to pay check.
4. If you are married or have a partner but unsure if you would like them to be on the home loan with you due to income or score, it’s best to apply with both and let the lender help make that determination for you.
5. Don’t let anyone talk you out of it by oppressing you with their own fears. Buying a home is one of the safest investments you can make.
If you are a First-Time homebuyer in the Charlotte NC area and want to get started with owning your own home, you can fill out the form below or call me directly at 704-965-3319. I would be honored to help you.
You may also APPLY ONLINE to see what homebuyer programs you’re eligible for. I hope you have found this information enlightening.