September 19th, 2017 8:49 AM by Jackie A. Graves
Are you sitting on the sidelines wondering if you should
take action on buying a home?
is power, but consumer surveys find that homebuyers aren’t evaluating all their
options, potentially leaving money on the table. In fact, mortgage insurer Genworth found that 39
percent of mortgage professionals believe that first-time buyer demand is being
restricted by lack of knowledge.
you can take two important steps to get educated and learn how to save on your
home loan. Ready?
half of buyers don’t shop around for their mortgage. Is that you?
to an analysis by the Consumer Financial Protection Bureau (CFPB), 47% never considered more than one lender. The
CFPB also debunks the myth that shopping around lenders will hurt your credit
score. When multiple credit checks are concentrated over a short period of
time, they are typically treated as one inquiry and won’t hurt your credit
score, according to the CFPB.
should not only shop lenders, but also compare different loan types to evaluate
your cash needed to close, monthly payments and other fees.
about the down payment? One of the key misconceptions among buyers is what’s
necessary for a down payment. Many mortgage professionals say that
consumers either believe that they must have a 20 percent down payment, or that
it would difficult to get a home with less.
there are many low down payment options and down payment
programs that can get you in a home much sooner for less down.
percent of Americans don’t know about down payment programs.
A NeighborWorks America survey, found that most
buyers simply are unaware of programs and therefore aren’t even investigating
these additional home financing options. NeighborWorks cites two common
misconceptions about down payment assistance: that only low-income buyers
can qualify for it, and that it isn’t available to first-time
homebuyers. But that’s not the case.
fact is there are a wide range of programs available in every community across
the country—more than 2,400 programs. Ask your lender or agent about program options that can be combined with
your first loan. You can also find affordable home loans through your state or
local Housing Finance Agencies (HFAs). Some of these programs feature lower
minimum down payment requirements, competitive interest rates, down payment
programs and homeownership counseling.
these two steps before you start touring homes. After you have your
home loan details in order, you’ll know what homes and price points
will best fit your situation. Good luck!
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