Surveys have shown that most people believe they need to put down 20% or higher to buy a house. The truth is there are mortgage programs that will allow you to put as little as 3% down!
2. Most home loans today require a credit score of 600 or higher.
A report released by the loan origination software company Ellie Mae in 2017 showed that a small number of borrowers in the 500 range received a loan.The majority of loans given out are to borrowers with a score of 600 or higher.
3. It's wise to have a real estate agent.
The seller pays the agents commissions! For first time home buyers the process can be difficult. Professional guidance from an experienced real estate agent will help you through the process.
4. Mortgage Rates are expected to creep upward.
30-year fixed mortgage loan rates are expected to continue increasing. First time home buyers should know about these trends, especially because home values are also expected to rise.
5. Know about future developments in the area.
When considering a specific home, consider future developments. Is the home near a busy road? Are there expansions in the future? Is there a lot of space around the home? Are more homes expected to be built? Are there several homes on the market in the area? How fast are the going? Keep in mind the potential resale value.