A First-Time Home Buyer Guide to New Home Financing in 2023
Where to start as a first time home buyer? The first thing you should do is to start building your credit and learn how much you can afford to spend on a house.
Purchasing a home for the first time can be an exciting, yet overwhelming experience. With so many financing options available, it can be hard to know where to start.
Here are a few things to keep in mind as you do your research.
FHA loans are a popular option for first-time home buyers because they typically offer low down payments and flexible credit requirements.
To qualify for an FHA loan, you'll need to get preapproved by a trusted lender.[can this be a link to Pippa?] The lender will check your credit and income to ensure that you meet the eligibility requirements.
An FHA loan is the best option for new home buyers looking for a low down payment or if you have lower credit scores.
Finance a New Home with a Conventional Loan
Conventional loans are a popular type of mortgage for home buyers who have higher credit scores. They are not government sponsored loans, but rather loans made lthrough private lenders or sponsored by Fannie Mae or Freddie Mac. They have stricter credit requirements and require a larger down payment. Conventional loans are common loans for new construction homes.
New Home Construction Loans
New home construction loans are the typical type of mortgage for financing a new home build.
Lenders design these loans in a way that helps borrowers cover the costs associated with building a new custom home, including purchasing the land, the cost of construction, and additional costs such as permits and inspections.
Bridge loans are a type of short-term loan that you can use to finance a new home purchase.
They are good options for those who want to bridge the gap between when the borrower sells their current home and when their new home is ready for them to move in.
It is a good idea to get pre-approved for a bridge loan. By doing this, you will get a better idea of how much you can afford to borrow. Once you know this, it will be easier for you to secure financing for your new home.
Finding New Home Financing
If you are a first-time home buyer, it is important to understand the different ways to find financing in 2023. Conner Homes is here to help. We offer a no-obligation, easy prequalification process that makes it easy to understand new home financing. So don’t hesitate to contact us to get started today!