Shopping for your first home in San Diego? As excited as you may be, there may be many obstacles you perceive to be standing in your way. But it is common for first-time homebuyers to overestimate these challenges. You may be surprised by how many solutions already exist to help you qualify for your first home loan. Let’s go over some common first-time home buyer problems and solutions.
Problem: You cannot afford a large down payment.
Solution: There are multiple loan programs which can minimize your down payment. Examples include the FHA loan program, the Conventional 97% LTV program and the VA loan program. If you qualify for one of these, your down payment could be low or nonexistent. You also may find local programs to help you afford your first down payment.
Problem: Your credit score is not perfect.
Solution: Mortgage programs such as FHA do not look for perfect credit scores and may still qualify applicants for down payments as low as 3.5% without them. There are also some options you can try for raising your credit score before you apply for a home loan. This is something I can talk to you about during your consultation.
Problem: Your debts are high, and your income is low.
Solution: As this is a common scenario among first-time homebuyers, you may find that programs like FHA are still enough to cater to your needs. But if a high DTI remains a problem, you can look for ways to reduce your bills, or see if a cosigner can help you out. If other metrics are in great shape (i.e. a high credit score), these can help to offset your DTI as well.
Problem: You have no idea what type of mortgage you need.
Solution: FHA? VA? Conventional? Jumbo? If you are not sure what type of mortgage to apply for, don’t be too hard on yourself. Many first-time homebuyers are not sure what all the letters stand for in the names of mortgages or what the difference is between one lending product and the next.
That is where the right mortgage lender can help you out. During your consultation, I can explain each type of home loan to you along with its pros and cons and tell you what you may qualify for based on your borrower profile.
Problem: You do not understand the home-buying process.
Solution: The home buying process can sure seem complicated when it is your first time around! Here too, I can help by answering questions and simplifying the process as much as possible.
Let Me Help You Apply for Your First Home Loan
The perfect home in San Diego is calling your name and you may qualify for a competitive loan to purchase it with even if you do not have ideal credit or cannot afford a high down payment.
To get started now, please give me a call at (619) 857-7191. I can’t wait to meet you during your consultation and help you move into your first home!