The Best Options for First Time Homebuyers

Finding the right mortgage is critical for first-time home buyers, which can feel like a monumental task. There are many people involved, new terminology, reams of paperwork, and fees that must be paid throughout the process. While it's tempting to go along with whatever "the experts" tell you in order to get through the process, it is essential for consumers purchasing their first homes to find reputable lenders that give the best rates, right terms, and lowest closing costs. Finding the best options for first time homebuyers ensures that new homeowners get into their new homes quickly and efficiently. The three best lenders with first time homebuyer programs include Quicken Loans, Chase, and SoFi. Ask these questions when pursuing the best options for a first time home buyer loan.

How much of a down payment will be required?

The amount of down payment required depends on the type of loan secured. FHA loans can range from 0 to 3.5 percent downpayment. Other specialized loans may also not require a down payment.

How much home can I afford to buy?

This is an essential question to answer before even starting to look for a home. How much mortgage homebuyers choose to take on depends on a variety of factors, including down payment, income, current debt, interest rates, and length of the mortgage loan, among others. First time homebuyers need to research how much they can afford to pay each month, working backwards to determine the answers to the other questions.

What are different mortgage loan options for first time homebuyers?

There are several different types of mortgage loans. These include conventional fixed-rate mortgages, FHA loans, VA loans for veterans and service people, interest-only mortgages, and adjustable-rate mortgages.

Are there specialized home loans available?

There are a few specialized home loans available for those who qualify. FHA loans are a great option for first time home buyers because they are easier to qualify for and have lower down payment requirements. VA loans allow service members and veterans to purchase homes often without a down payment. A USDA loan targets rural areas and allows 100 percent financing. The Good Neighbor Next Door provides up to 50 percent off the list price of homes for teachers, law enforcement, firefighters, and EMTs in revitalization areas.

Can I get preapproved for a loan?

It is recommended that first time home buyers get preapproved for a mortgage loan before going out to make offers on houses. Having preapproval lets everyone involved in the process know that you are serious about making a purchase.

Why should Quicken Loans be considered by first time homebuyers?

Quicken Home Loans has a full selection of conventional, FHA, VA, and USDA loans. This company is the largest FHA lender in the United States. They offer customers a single point of contact, even though they are a bigger company. Most first time homebuyers complete their loan process over the phone with one specific person.

What are the advantages of first time home buyers partnering with Chase?

Chase Mortgage is great for first time homebuyers, as they provide services in all 50 states. While many customers of Chase Mortgage are already banking with the company, but that is not a requirement. The mortgage process can be started online and completed either over the phone or in one of the branches, but applicants can still track their paperwork and mortgage loan process online. 

Why should SoFi be trusted by first time home buyers?

SoFi is ideal for those who want larger mortgages as they have high incomes but not a lot saved for down payments. Their lending platform is all-digital, and they consider disposable income, career prospects, professional history, and history of bill payments as part of their overall financial health. This process is nontraditional and fairly easy to complete, giving many first time homebuyers the homes of their dreams.

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