Getting Your First Home Loan Is Easier Than You Think

If you live in California or Florida, it's unquestionably harder to meet the criteria for first home loan due to transient population. People move in and out of these two states as fast as you can flip a pancake. The same "no money down deals" that used to be so popular in these states are now gone.

In their place, you'll find some first home loans will require at least a 10% down payment, if not more. This may seem hugely unfair and it is but the transient population makes it difficult for banks. From the banks point of view, everyone has to suffer for the people who move in and out of these two states. If you can prove you've lived in the area and plan to stay awhile then the banks will relax their protocols.

Most other states you can still get your first home loans with only 5% down. Even so, it pays to look around and get the best deal you can. After all, you'll be paying on your new dream house for a long time.

Credit score requirements for first home loans have risen and who know what they're going to be now with the housing crisis. But as of now a good score is 720, higher and you most defiantly will get the loan for your dream house.

If you don't meet the credit score requirements, the bank may still offer you a loan - after you pay substantial upfront fees. And if that wasn't enough, you'll be offered a higher interest rate to compensate for any deficiencies in your credit report.

This may make it difficult to qualify for higher amounts after you take into account the fees and monthly payments. Always check with your local city and state government offices. There are programs to help out first time home buyers.

If you qualified for a loan before the new rules, you may have some nasty surprises ahead of you. Mortgage loans approved in the past can easily be affected, with the most common problem being how much of a cushion you need to buy the house.

If you qualified with a 5% down payment, you might need 10% now. Since the percentages are based on the total cost of the home, you may be facing additional monies you need to come up with before closing. This is why many people are finding that even if they qualify, they are caught short of cash. Again, check with local agencies, there are programs to help out first time home buyers.

The situation is not the same in every state or country. Be sure to check your local real estate market and lenders. Lenders are becoming more aware that some areas have resisted the downturn and they are not as concerned about fallout in housing prices there.

This can impact the types of offers that are available in your area versus some place like Florida and California. As long as the market is good in your area, you will probably have more choices in first home loans and favorable terms than other more affected areas.

You're in the market for a home and you're excited. You found a home you want to buy, you checked your credit and it's in great shape and you're ready to go for your first home loan. Remember, It's not that hard to get your dream home if you have the informaiton.

Where do you go from here? Glad you asked. Now's the time to get your first home loan quote. Click to go to the next segment on getting first home loan quote.