Run some numbers, but ours are better.

Are You Really a "First-Time" Home Buyer? (Spoiler: You Might Be!)

Think you missed your shot at first-time buyer perks because you owned a home before? Good news – you might still qualify! Here's the deal:

You're considered a first-time buyer if:

• You haven't owned a home in the last 3 years
• You're divorced and only owned a home with your ex
• You owned a mobile home
• You owned a home that wasn't up to code and would cost too much to fix

Why Should You Care? Being a "first-time" buyer can save you serious money through:

• Lower down payments (sometimes as little as 3.0% with Conventional Loans)
• Down payment assistance (free money – yes, really!)
• Special tax breaks
• Access to better loan terms

Quick Tip: Each program has its own rules, so don't assume you're not eligible. Many people qualify without realizing it!

Gone are the days when everyone needed a 20% down payment. Here's the real scoop on what you might need in 2024:

Minimum Down Payments by Loan Type:

• FHA Loans: As little as 3.5% down with a credit score of 580+
• Conventional Loans: Starting at 3% for qualified buyers (sometimes as little as 0% Down)
• VA Loans: 0% down for veterans and service members
• USDA Loans: 0% down for homes in eligible rural areas

Let's Break That Down in Real Money: On a $300,000 home, that could mean:

• FHA: $10,500 down (at 3.5%)
• Conventional: $9,000 down (at 3%)
• VA or USDA: $0 down

But Here's What You Should Know:

• Lower down payment = higher monthly payments
• You'll likely pay mortgage insurance with less than 20% down
• A bigger down payment gives you a better chance in competitive markets
• Local first-time buyer programs might help cover your down payment

Pro Tip: Don't empty your savings for a down payment! You'll still need cash for:

• Closing costs (2-5% of loan amount)
• Moving expenses
• Your emergency fund
• Initial home repairs

The Bottom Line: While you can get into a home with as little as 0-3.5% down, aim for what works for your monthly budget and long-term goals. Sometimes a bigger down payment makes sense, but don't let the old "20% rule" scare you away from homeownership!

Want to run the numbers for your situation? Most lenders offer free consultations to break down your specific options.

Here's What Different Loans Actually Require in 2024:

• FHA Loans: 580+ for a 3.5% down payment (500-579 needs 10% down)
• Conventional Loans: Usually 620+, but 740+ gets you the best rates
• VA Loans: No official minimum, but most lenders want 620+
• USDA Loans: Most lenders look for 640+

The Real Talk About Credit Scores:

• The minimum score isn't always enough - higher scores = better rates
• A 700+ score puts you in a sweet spot for good options
• Lenders look at more than just your score (income, debt, job history)
• One late payment won't kill your chances

Quick Ways to Boost Your Score:

• Pay bills on time (set up auto-pay!)
• Keep credit card balances below 30% of your limit
• Don't apply for new credit while house hunting
• Check your credit report for errors (it's free!)

The Truth About Bad Credit: If your score isn't great, don't panic. You can:

• We can work to improve your score for FREE
• Take 6-12 months to improve your score
• Look into FHA loans
• Consider rent-to-own options
• Partner with a co-borrower

Bottom Line: While you can technically buy a house with a 500 credit score, aim for at least 620 to have more options and better rates. The difference between a 620 and 720 score could save you hundreds each month on your mortgage!

Think of it like a background peek at your credit that doesn't leave a mark. It's similar to when you check your own credit score or when employers run a credit check. The big deal? These don't hurt your credit score!

The SAFE Way: A Soft Credit Check Pre-Approvals

• Same strength as traditional pre-approval
• Doesn't ding your credit score
• Usually takes minutes, not days
• Lenders verify your info without hard inquiry
• Just as valid for making offers

Why This Matters:

• You can shop multiple lenders without hurting your credit
• Get a real pre-approval letter faster
• Know exactly what you qualify for
• Make stronger offers on homes
• Save your hard credit checks for the final loan application

Pro Tip: Even with soft credit checks, save all your mortgage shopping for a 14-45 day window. When you do get hard credit pulls for your final loan, they'll all count as one inquiry if done within this timeframe!

Dont want pesky Cold Calls: www.optoutprescreen.com 

You can opt out of Electronic Pre-Screened / Pre-Approved Credit Offers for 5 years. When you do a HARD Credit Pull your DATA is sold by the credit bureaus (Experian, Transunion, Equifax) to bottom feeding bait and switch mortgage companies. 

 

The Too Long; Didn't Read:

Closing costs are all those extra fees beyond your down payment. But here's the good news - you might not have to pay them all yourself!

Show Me the Money: What's Included? Typical closing costs run 2-5% of your loan amount. On a $300,000 house, that's $6,000-$15,000 for stuff like:

• Lender Fees: Application, underwriting, processing
• Third-Party Fees: Home inspection, appraisal, title search
• Government Fees: Recording fees, transfer taxes
• Insurance & Taxes: Property tax, homeowners insurance
• Title Insurance: Protection against ownership claims

The Game-Changer: Seller Concessions 

Here's the hack most people don't know about:

For Conventional Loans:

• Sellers can pay up to 3% of your closing costs
• On a $300,000 home = up to $9,000 in help

For FHA Loans:

• Sellers can kick in up to 6%
• On a $300,000 home = up to $18,000 in help

Pro Tips for Getting Sellers to Pay:

• Ask! Many sellers expect to help with closing costs
• Use it as a negotiation tool instead of lowering the price
• Markets matter - harder to get in competitive situations
• Get your agent to pitch it right

Other Ways to Handle Closing Costs:

• Lender credits (trading a higher rate for lower costs)
• First-time buyer assistance programs
• First-Time Buyer Grants (sometimes $1,500 - $4,500 in FREE money)
• Negotiate individual fees with your lender

The Real Talk: Yes, closing costs suck. But don't let them scare you away from buying. Between seller concessions, lender programs, and smart negotiating, there are legit ways to reduce what you pay out of pocket.

Quick Action Steps:

1. Ask lenders for official Loan Estimates
2. Compare fees between lenders (they can vary by thousands!)
3. Research local down payment assistance programs
4. Talk strategy with your agent about seller concessions

Remember: In today's market, sellers often expect to help with closing costs - you just need to make it part of your offer strategy!