Purchasing a home for the first time is an exciting life milestone, but with so many requirements and financial decisions to make, it can seem like an extremely challenging process to undertake. Fortunately, there are several programs geared towards first time homebuyers that encourage them to explore their options in the real estate market. If you are a first time home buyer looking to purchase a home in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage. Our mortgage specialists can work closely with you to determine the best first time home buyer program for you.
Things To Consider When Buying Your First Home
As you take steps to buy a new home, you should begin to consider saving your finances and improving your credit score so that you will be able to better qualify for any type of loan. You will need to consider how much you can put down for a down payment; the more you can put down upfront, the less your mortgage payments will be. You will also need to take into consideration the length of term you desire, the interest rate you are able to lock in, and the amount of closing costs you will need to pay.
Great First Time Home Buyer Loans
There are several first time home buyer loans that make it possible for many people to afford their home. Foundation Mortgage can help you determine the program that works best for your situation. Some popular first time home buyer loans include:
- FHA loan – This loan is backed by a division of the government called the Federal Housing Administration. It allows borrowers with lower credit and a lower down payment amount to qualify for a mortgage.
- VA loan -This loan is insured through a division of the government known as the U.S. Department of Veterans Affairs. It allows military servicemen and women and veterans to qualify for a home with no down payment.
- USDA loan – This loan is backed by the division of the government known as the U.S. Department of Agriculture. It is intended for borrowers who are looking to purchase a home in a rural area.
- Conventional loan – Some traditional loans are available for first time home buyers with higher credit through Freddie Mac or Fannie Mae that offer low down payments, sometimes even as low as 3 percent down.
Guidance For the First Time Home Buyer
Buying a home for the first time can sometimes seem overwhelming because there are many different loan types and many different expenses that come with completing the purchase. Our team at Foundation Mortgage can work closely with you to determine what loan option is the best for you. If you are searching for your first home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact us today for a consultation.