A first time home buyer Tucson may find that several mortgage programs are available, which offer a multitude of benefits. Among these benefits are no down payment requirements and lower interest rates. A mortgage lender could inform you of the many first-time home buyer options that are available to you and how to apply for the programs.
Before You Buy
As a first-time home buyer, you are entering unfamiliar territory and may not comprehend requirements for mortgage eligibility. The first item on your checklist for acquiring a mortgage loan is to evaluate your credit history. To acquire a lower interest rate and obtain a first-time buyer’s loan you should pay-off all debts that could have a negative impact on your approval rating and credit scores.
Pre-approval
Some real estate agents require that you secure a pre-approval from a mortgage lender before he or she proceeds through the buying process with a buyer. You may acquire a pre-approval through your preferred mortgage lender. It consists of the total mortgage value you are approved to acquire based on credit history and affordability. New restrictions apply to mortgage loans, which require lenders to evaluate a buyer’s income and monthly expenses to establish affordability.
Down Payment and First-time Buyer Programs
In order to participate within a first-time buyer program that does not require a down payment you must meet eligibility requirements. These requirements include high credit scores, a stable work history, and adequate income. There are also first-time buyer programs that allow you to pay a smaller down payment than home buyers who have purchased a home previously.
Assets
Business owners or consumers who have acquired significant assets may qualify for a first-time buyer program based on the overall value of their assets. You may qualify for a first-time buyer program, if your assets equate to the value of the selected property or exceed this value. A lender is more likely to approve a mortgage loan if you possess assets that you could liquidate to pay off the mortgage if a financial crisis occurs. As a first time home buyer Tucson with significant assets, you could use a portion of the assets as additional collateral to secure the mortgage.
