Congratulations in taking your first step to becoming a homeowner!
Buying your first home is an exciting time! It can also be scary, confusing and difficult. Here at Paragon Home Loans, we try to make it as easy as possible by educating you on the process of how to buy your first home and keeping you up to date on what is happening throughout the entire journey.
Let's talk about your options for a first time home buyer loan.
What do I do first?
While it’s easy to get swept away in grandiose staircases and dream kitchens, it’s important to know what you can afford prior to looking for your first home. We have mortgage calculators that will help you get an idea of the numbers.
When you are ready, the next step in the process is getting pre-qualified for your first time home buyer loan. This process will assess your income and debt obligations, allowing us to issue you a letter telling you the maximum amount of a money we are able to lend you.
I’m Pre-Qualified. Now What?
Once you have your pre-qualification letter you can start shopping for a home that fits your budget. Take your time when looking as this is a big decision! When you find the right house, have your agent put an offer in to the Seller. Once accepted and the contract is signed, send all of the paperwork over to your loan officer so that they can begin working on your mortgage commitment letter!
What’s in my Commitment Letter?
Your mortgage commitment letter will contain some key information regarding your first time home buyer loan including your loan amount, principle and interest payment, rate and the conditions of your loan that must be satisfied. The conditions of your first time home buyer loan that must be satisfied typically include giving us a copy of your tax returns, W2s, paystubs, bank statements and Paragon Home Loans receiving a satisfactory home appraisal. Keep in mind that throughout the process our team may ask for additional documentation in order to satisfy requirements. This is to ensure that you get the best first time home buyer loan possible.
My Commitment Letter says that I need an appraisal. What’s that?
The home appraisal will assess the condition of the house and determine if the value that you are paying for it is fair. It will also let us know if there are any necessary repairs. Repairs that we typically see are scraping and painting and installing hand rails.
What You'll Need to Get a First Time Home Buyer Loan
Once all of your financial documents and the appraisal is approved you are Bank Cleared. This means everything on your end of the transaction is done. At this point we are waiting on the legal side of things to clear the title. Generally these happen either simultaneously or very close to one another. Once you are legal clear or Title Cleared your closing will be scheduled.
At the closing you sign all of the transfer documents and pay your closing costs. Your closing costs include your down payment, lender fees, legal fees and any other fees that may have arisen during the course of the transaction.
Apply for a First Time Home Buyer Loan