If you are a first time home buyer, the first thing you are going to have to think about is financing. Should you go through your bank? Through a credit union? What other options are available?

Loans:

The first place you should call is your bank. They will be able to tell you what they have to offer and today’s rates. Many banks will over you a reduced rate if you are a current customer and choose direct withdrawl for your payment.

Afterwards, call around. Call various banks and credit unions. Find out from the credit union if you get a reduced rate if you are a member.

Alternate places to get loans: HUD, Veterans Affairs (if you are a military veteran), or sometimes a personal loan.

Grants:

HUD - Meet with your local HUD office. Many HUD offices offer Grants to cover your PMI and a percentage of your down payment. These grants are not always financial need based.

Grants.gov - Excellent source for all government grants available for first time home buyers.

State grants - many states offer first time home owners grants. Most of these are to help pay towards your down payment to avoid PMI payments.

Remember, if it is a grant, you do not need to pay the funds back.

Your Realtor and your financing officer may or may not know about these options, so do your own research online.