Below we will discuss some commonly asked questions from first time owners .This is great information that will help make the often scary home buying process a little easier. If you are a first time buyer that has a question, please reach out to us 7 days a week. Please submit the quick “Request Contact” form at the top side of your screen. Please also be sure to call ph: 800-871-2636 with questions.
Question: Would I be considered a first time buyer? I owned a home many years ago. J. Kelly – Spring Hill, FL
Answer: Generally a first time buyer is one what has not had ownership in a home during the previous three years.
Question: Would we be required to take a class of some sort before we apply for a mortgage? S. Donaldson – Dallas, Texas
Answer: All of the most common first time buyer programs – FHA, VA and USDA loans do NOT require any schooling or class. Buyers can do their application and get pre-approved all on the same day. The entire process often takes less than 30 minutes.
Question: How long is my loan pre approval valid for? What happens if the pre approval expires? M. Leon – Riverside, California
Answer: Your initial loan pre approval (or pre qualification) is valid for 90 days. After 3 months, the lender will simply update any changes (job, income, etc) and re pull a new credit report. Once this done the lender/bank will issue a new pre approval letter to you.
Question: How much money will I need to put down to purchase a home? J. Collier – Macon, Georgia
Answer: It depends on what loan program you qualify for. The USDA and VA loan programs still allow 100% financing with NO down payment. Your location may also be approved for 100% USDA Rural Housing, please read more about the USDA mortgage here. The FHA home loan is widely used but will require a 3.5% down payment. However, in some cases first time home buyers can use select county and city down payment assistance programs (DPA) like SHIP to help with the down payment. This assumes funding is available and you qualify. In addition, all government loans programs ( FHA, VA, USDA) permit gift funds to help with down payment and/ or closing costs.
Question: Can my parents co sign on the mortgage with me? S. Chavez – West Palm Beach, FL
Answer: The FHA home loan does permit non occupying co signers. The USDA loan program does not. Anyone listed on a USDA mortgage must occupy the home at the time of closing.
Question: How long before I can sell my home after I close, or pay off the mortgage? H. Carter – Omaha, Nebraska
Answer: Borrowers can pay off their loan or sell their home anytime without penalty. Government mortgage programs do not have any “pre payment” or “early payoff” penalties.
Question: How long will it take to close on my new home? F. Wolfson – Tempe, Arizona
Answer: Your closing time will depend on what loan program you use. Generally from the time you are under contract – closing will take about 3 weeks with FHA, VA and Conventional loans. USDA loans take a few weeks longer as these loans go through a two step approval process with both the lender and USDA.
Question: Do I need to have a Realtor help me? Y. Roberts – Richmond, Virginia
Answer: No you do not. However, the real estate purchase process is complex, especially for first time home owners. Contract negotiations, home inspection, appraisal, survey.. the list goes one. Most will advise a trained Realtor is a valuable asset during the home buying process. Keep in mind, the buyer real estate agents is often paid by the home seller, so there is no cost to you.
Five Stars is a leading mortgage resource serving all first time buyers 7 days a week until 8pm. To learn more about any first time programs, please submit the “Request Contact” form at the top of your screen. Also fee free to call ph: 800-871-2636