Florida first time home buyers often have many questions about the home buying process. Many buyers want to know where to start, the loan approval process, etc. Below we have outlined a few tips before you jump in and take that big step towards home ownership.
- Loan application and loan pre qualification – You need to first figure out if you are going to qualify for the perfect home! In addition, you need to understand the costs, timelines, loan process, etc. Do this before you start looking at homes or talking to any realtors. Your loan officer can generally take your loan application in 20 min. All of the information requested by your loan officer will generally be things you know by heart, nothing too complicated – 2 year job history, living history, social, etc. Once this is complete they will advise you on your approval status, costs, payments, terms, etc. You will also be armed with a pre approval letter – most realtors and home sellers will demand this before even talking to you.
- Keep everything the same – Don’t quit your job, change employers, open new credit account or move any large amounts of money in/out of your bank account. Very important to always discuss these things with your loan officer in advance. Everything needs to remain the same, your loan approval is based on this.
- Save money – Most first time homebuyers in Florida will use one of the available government loan programs – FHA, USDA or VA. The 100% USDA Rural housing loan and VA home loan are the only no down payment loan options available today. Buyers must be past or present military to use the VA mortgage option. Even with the 100% financing mortgages you will need some money. Once you are under contract on that perfect home you will need to provide a good faith or “earnest money” deposit. This is customary and shows the seller(s) you are serious and plan to close. This deposit will generally amount to $500-1000 depending on the purchase price of the home. In addition to this, you will need to pay for your home inspection (around $300) and appraisal (around $400) in advance. With a properly structured loan, first time homeowners using the 100% USDA or VA mortgage can often receive their upfront deposit money back at closing. All the government loan options allow the seller of the home to pay the buyers closing costs.
- Communication – call your loan advisor before submitting a contract on a home. Every home is different in regards to taxes, home owners dues, home owners insurance. Once you have selected that perfect home and have the address, your loan advisor can “drill down” and provide more accurate costs to you.
USDA Mortgage Source is Florida’s leading Government loan information resource. Serving all of Florida including Spring Hill FL, Land O Lakes FL, Wesley Chapel FL, New Port Richey FL, Pasco County, Hernando County, Please contact us at 904-302-6060 or visit www.UsdaMortgageSource.com
First Time Home Buyers Advice – revision 6/13/2014