Have you decided that it is the right time for you to invest in a new home? Buying a house is an important decision that should bring you joy for years to come. House hunting can be both fun and exciting as you peruse different websites and visit different real estate agents to find your dream home. Before you start house hunting, a good idea would be to get yourself pre-approved for a mortgage. This will give you an idea of how much you can afford to spend on a house, and will avoid a lot of disappointment in the long run. (more…)

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.