We know that buying your first home can seem overwhelming, but it doesn’t have to be. We’re here to walk first time home buyers through the mortgage process and help you on this exciting journey!
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What Do I Need to Get a Mortgage as a First Time Home Buyer?
Start Off Right
A Budget
Knowing what you can reasonably afford is the first step in purchasing a home. Be sure to evaluate what you’re able to spend on housing based on your current financial situation including income, spending and debt, so you can create a realistic budget for your household.
A Pre-Approval Letter
Factors like debt, income, and credit scores can affect what kind of mortgage that you qualify for and what your interest rate will be. Talk to a loan officer to see what you could qualify for and get a pre-approval letter to start looking for homes in your price range.
Down Payment and Closing Costs
You may have heard that you need to save 20% to purchase a home. However, that’s not true! Down payments can be as low as 3% and closing costs typically equally 3-6% of a loan value.
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Your First Home!
Our team of dedicated Senior Loan Advisors are here to help you through the mortgage process and answer any questions you may have.
What Mortgage Options are Available to
First Time Home Buyers?
Conventional 30-Year Fixed Mortgages
This is the most popular mortgage option. Conventional 30-Year Fixed mortgages are a fixed interest rate mortgages that require as little as 3% down but may require a higher credit score.
FHA Loans
FHA Loans allow you to put as little as a home 3.5% down on your mortgage and also offer 30-Year Fixed terms. They offer more flexible credit requirements,and options for minimizing out-of-pocket closing costs.
Adjustable Rate Mortgages
Adjustable Rate Mortgages have adjustable interest rates. They offer borrowers lower initial mortgage rates and could be a good option if you will move or refinance your mortgage in a few years.
Speciality Mortgages
Looking for help getting a mortgage because you are self-employed or for a way to qualify for more with a 40-Year mortgage? Talk to your loan officer about your specialty options at Newfi.
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What are Mortgage Down Payment Requirements?
Many first time home buyers are intimidated by down payment costs because they believe that they’ll have to put 20% down on a home. Good news! That is not always the case. Not all down payment requirements are the same because not all mortgages are the same! You may be able to put as little as a 3% down payment on your mortgage, depending on the mortgage you qualify for.
Frequently Asked Questions
How Much Home Can I Afford?
Every situation is different, but a great place to start is by taking a look at your monthly income and debt and assessing how much you can reasonably afford to pay each month. Use our affordability calculator here to help you calculate this.
Are There Tax Credits for First Time Home Buyers?
One of the many perks of homeownership are tax credits and deductions for your home purchase. All homeowners are eligible to deduct the interest from your mortgage payments, points, and property taxes from your federal income tax filings.*
* Newfi does not provide tax or accounting advice. This web page is not intended to provide, and should not be relied on for, tax advice. Consult your tax advisor before engaging in any borrowing transaction.
How Do I Get Pre-Approved for a Mortgage?
You can quickly get pre-approved online or over the phone by contacting a Mortgage Advisor at (888) 316-3934. To get your personalized pre-approval letter, you’ll need to provide information about your financial situation.
How Does My Credit Score Affect My Mortgage Rate?
Higher credit scores lead to lower interest rates while lower credit scores lead to higher interest rates. However, credit scores can change over time, so if your score is not where you would like it, you can build your score up through good payment habits, paying down debt, and correcting errors on your credit report. If you have a lower score — say, under 620 — check out our low credit mortgage options.
What documents do I need to apply for a mortgage?
Home buyers will need to provide documentation on housing history, employment history, monthly income, credit score, debt history, and more. Your loan advisor will walk you through the exact documents you will need to provide, You can upload these in our easy-to-use portal for security!
How do I make an offer on a house?
Once you’ve found your home, you will work together with your real estate agent and Newfi Mortgage Advisor to structure the right offer for your needs, time frame, and budget.
What are Current First Time Home Buyer Mortgage Rates?
Your exact rates depend on the interest rate you qualify for and the term you select. You can get better rates by having a higher credit score or down payment on some loans. Contact us to review your options and calculate your payment.
What is the First Step in Qualifying for a Mortgage as a First Time Home Buyer?
Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Go to newfi.com/get-started or fill out the form on this page for a free consultation with one of our licensed loan advisors to learn about what you may need to consider as a first time home buyer.