First Time Home Buyer Qualifications

Find the coolest list of first time home buyer qualifications.

One of the most exciting things that a person does in their life is buying their first home. You finally get to have your own piece of the pie, a place you call your own.

There are some basic guidelines you must meet so you can rejoice like this happy couple.

Some First Home Qualifications

• High Middle Score to Lower Home Mortgage Rate

  Most lenders base their decision on your middle score. You can check your credit score for free by going to each credit bureau and asking for a free copy of your credit report.

  You are allowed to get one copy from each a credit reporting agency, one each year. The lenders will be looking at your FICO score so you will want to see what you can do to improve your score before closing the deal. This way you can get the best home mortgage rate for your mortgage.

• Credit History and Your First Mortgage

  Have you been more than 30 days late on anything, any bankruptcies, judgments, etc.? Do you have at least four lines of credit that are at least 2 years old? These will have an impact on your qualifications so make sure you have a good credit history.

• Rental History Can Affect Your Home Mortgage Rate

  Lenders want to see that you are paying your rent on time. If you have a mortgage, they will look at how timely are those payments as well. A very important first time home buyer qualifications are 12 months of on time rent or mortgage payments.

  Paying in a timely fashion will help you qualify for a better home mortgage rate.

• Do I Have Enough Income?

  First time home buyer qualifications include your debt-to-income ratio (DTI). This is very important to lenders. No more than 28% of your gross income should go to your house payment and 42% of your income for all other debts including the house payment. This is a DTI of 28/42. So if you have very many debts, you should pay off some debts to lower your DTI.

• What About the Down Payment?

  Most first time home buyer qualifications will require 10-20% down for conventional loans. Although there are some that only require 3% down. So make sure you have some money saved or investigate grant or down payment assistance programs.

The specifics of what you need to qualify for a mortgage depends on the type of loan you are going for. Each type of loan will have certain criteria that you need to meet in order to get through the loan process and get approved for a low home mortgage rate.

FHA Fixed Rate Mortgage

The Federal Housing Administration (FHA) provides great programs for home buyers, especially for those looking into first time home buyer qualifications. FHA actually provides mortgage insurance for FHA approved loans which makes it one of the safest choices for the mortgage lenders.

The FHA fixed rate mortgage helps to protect all parties involved in the loan process including the home buyer. This makes a great choice for first time home buyers.

Being a first time buyer gives you a better chance on getting a first home mortgage. Just be sure to check out what types of loans you want and learn the specific qualifications for each lender.

Learn all about the different types of loan programs to choose the one that fits your needs the best.

Understand the various FHA loan programs to see if one may be better than another.

Do you have more questions? Have a question is an awesome place to look for answers or to ask those important questions.

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