First Time Home Buyer Loans from American Financial Resources

Most people dream about owning a home for years before it becomes a reality. It can be scary to take that leap into home ownership, but it is a wonderful feeling to not be throwing money away on rent month after month. You also have the pride in knowing you own your own home, and can truly make it yours. With most areas of the country experiencing a strong buyers market (meaning there are many more available properties for sale than potential buyers) it could be the perfect time to purchase your first home. Even though the first time home buyer tax credit has expired there are still many things working in favor of first time home buyers.

What can I afford to borrow with a first time homebuyer loan?

One of the most important steps towards purchasing your first home is to figure out the price range of homes to look at. This will likely be less than the amount you will be approved by a lender to borrow through a first time home owner loan. Look closely at your monthly budget to see what you can afford to pay every month for housing, and at your personal savings to see what you can afford to pay initially for your earnest money, closing costs, and down payment.

Your American Financial Resources loan consultant can then help you use those numbers to see what value of home you can afford. Your monthly housing expenses (some of which will be paid through your first time home buyer mortgage) may include principal and interest for your mortgage loan, property taxes, homeowners insurance, utilities, and property owners association dues as applicable. You will also want to retain some money in savings for upkeep of your new home. You won't be able to simply call the landlord when something isn't working once you are the owner! Some sellers offer a one year home warranty when listing their property - it is reassuring to know that if something needs to be repaired soon after moving in it will be covered. Ask your real estate agent about this option.

If you don't have much saved for a down payment don't worry - there are government insured programs that allow you to put as little as 0% down. Also, in this market many sellers are also agreeing to pay a certain amount of the closing costs which can help keep your initial expenses extremely low.

Specializing in mortgages for first time home buyers

For those of us at American Financial Resources there is a special place in our hearts for first time home buyers. We get excited right along with them as they fulfill part of the American dream. We would be thrilled to help you take the first step towards your new home, and will be with you throughout the process. Please call us today at 800-316-9508 or Get Started Online.

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