First Time Home Buyer Information

Buying your first home is the biggest financial decision that most families will ever make.  Security America Mortgage works to make the process a simple and stress free as possible for First Time Home Buyers. 

When a First Time Home Buyers is making the decision to purchase a home they should ask themselves a few simple questions.

Should I rent or should I buy?

For a First Time Home Buyer you must understand that a home is an investment.  When you purchase a home it’s yours.  You can make it your own and create your own personal style.  The maintenance and upkeep will be up to you, so when you are budgeting for your First Home make sure you plan for unexpected expenses that come with owning a home.

First Time Home Buyer and No Down Payment?

Active Duty Military and Veterans who are First Time Home Buyers can purchase a home with no money down using their VA Home Loan Benefits.  VA Loans require NO down payment and the seller can pay up to 4 percent towards your closing cost and prepaid items.  If you are not a Veteran you can purchase a home with as little as 3.5 percent down payment using a FHA Loan or a Conventional Loan.  

Should I use a Real Estate Agent?

First Time Home Buyers should always use a real estate agent to help guide them through the process.  Security America Mortgage can refer you to one or trusted partners who are experienced working with first time home buyers.  A real estate agent will be there to answer your questions about different neighborhoods, the schools in the area, help determine your price range, show you listings of currently available properties, and negotiate the terms of the contract.

How much money does a First Time Home Buyer need to buy a home?

You much money First Time Home Buyers need depends on a variety of factors.  Generally you will need to set aside money for Earnest Money, Down Payment, and Closing Cost.   The Earnest Money is the deposit you make on a home when you submit an offer to prove that you are serious about purchasing the home and to act as consideration for the contract.  The amount of Down Payment required will depend on what type of loan you apply for.  A VA Home Loan requires no down payment.  A FHA Loan requires 3 percent down payment.  A Conventional Loan requires 5 percent down payment.  The Closing Cost will depend on a variety of factors such as what your lender charge is, what state you are buying in, and how much the seller is contributing towards the cost.

Security America Mortgage works with First Time Home Buyers every day to help them accomplish their goal of home ownership.  Feel free to call us anytime, we are here to help and make the process as smooth as possible.