First-Time Home Buyers
Being a first-time home buyer can be exciting and intimidating. Power Mortgage LLC can help you understand what to expect and provide useful information regarding your new home.
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Use the form below to provide us with some basic information and get a quote
Being a first-time home buyer is an exciting time
And that’s why Power Mortgage LLC is here, to help make you fearless as you head into one of the most important transactions many will make. Power Mortgage LLC has the experience and expertise needed to give you, the buyer, the confidence you need purchase your home and enjoy it every step of the way.
What is the home buying process?
Every transaction is differentThe process doesn't change. Purchases will be unique based on the financial situations of buyers. Depending on factors that span how long it can take for you to find the right home for you, to how the offer process can go, or your financial history. For the most part, once you find your home and make an offer, the process can take an average of 30-50 days. We'll list the steps to better understand the home-buying process:
Get pre-approved
Always the first step. We will meet with you to go over your financial details. This will give us an idea of how much house you can afford.
Find the right realtor
Once you've figured out the budget, you'll need to partner with a real estate agent that can help you through the process of shopping for a home.
Consultation & advice
After you've picked the realtor you want to work with, they will sit with you and understand what you're looking for with your first home purchase.
House-hunting begins
Once you and your realtor have decided what you want and can realistically expect, your realtor will set up appointments where you can see homes that
Make an offer on your dream home
You've worked with your realtor to look at homes and you finally found "the one." It's time to make an offer.
Close & move in
After your offer is accepted, you will begin the closing process and before you know it it's time to move in and enjoy your new home.
Curious about your potential mortgage?
Use our mortgage calculator to get an idea of what your mortgage payments may end up looking like. Make sure you’re aware of the current average mortgage rates when trying estimate your expected monthly mortgage payment and mortgage loan details.
Your total monthly payment
Interested in learning more about buying a home and getting a mortgage through Power Mortgage LLC?
It's important to know that as a first-time home buyer, you have advantages
First-time home buyer programs and finance options you should know about.
Down payment & loan options for first-time home buyers.
Have you ever asked asked yourself "how am I ever going to afford the payment to buy a house?" A lot of potential buyers have, and don't know just how much they may be eligible for.
Certain first-time home buyers have eligibility to programs that can bring that down payment as low as $0.
Programs, grants and loans exist for some borrowers that could bring that down payment number down to $0:
- VA Loans: These are non-conforming loans and, they are backed by a government agency which means they carry less risk. VA loans require no down payment at closing and have lower interest rates along with more flexibility with borrower requirements.
- USDA Loans: Eligibility for a USDA loan requires borrowers meet specific requirements like income, credit score, and location. Some qualified borrowers can enjoy $0 down with USDA loans. However, USDA loans come with what’s called a “guaranteed fee” that will raise your monthly payment, similar to the way it works with mortgage insurance.
- DPA Grants: The grants available to borrowers for Down Payment Assistance will vary by state and local governments. Check the information for your area to see if you are eligible.
Not everyone is eligible for $0 down payment programs, loans or grants. Thankfully, there are still options that remain that can see you paying far less than the standard 20% down for first-time home buyers.
- FHA Loans: FHA loans are loans backed by the Federal Housing Administration and can allow for as low as 3.5% down.
- Conventional Loans: For borrowers with good credit, it’s possible to be eligible for a conventional loan (not backed by the federal government) requiring a down payment as low as 3%.
Often times when borrowers are paying under 20% down, they will have to pay for PMI (private mortgage insurance) as an added cost in their monthly mortgage payment. It’s smart to account for this when planning your purchase if you’re using a program that allows for down payments under 20%.
Power Mortgage LLC: Discover the Difference
- Unique, buyer-friendly incentives
- Service and support to borrowers that is second to none
- Ruthless focus on borrower satisfaction
We’ve built a team of professionals dedicated to providing excellent service at all levels, and we’re not happy until you’re happy, confident and in the best position possible for buying a home. We love answering questions for customers and agent partners.
Have questions about buying your first home?
We've put together some answers to commonly asked questions about first-time home purchases.1 Is it worth it to buy a house right now?
It's impossible to truly know the future. Models, forecasts, and estimates can be put together to assume market performance, but no one really knows.
Despite some adjustments lately, like rising interest rates and inflation, mortgage rates are still at very low positions historically.
Whether or not it's worth it to purchase a home depends entirely on the situation of the potential buyer. It's never a good idea to take on more than you can realistically afford to manage. Rates are still historically low and making a financially responsible decision you can be confident about is rarely a bad idea.
2 Can you get a fixer-upper with an FHA loan?
Yes, qualified buyers can purchase a fixer-upper with an FHA loan. Thanks to a program called HUD 203(k) those who qualify can use an FHA loan to purchase a home that needs work, it also provides additional protection should the repairs end up more expensive than initially anticipated.
Along with the standard qualification and application process, buyers utilizing the HUD 203(k) program should anticipate some extra homework. Research is required to report what needs to be fixed, and the costs of the projects. When borrowers are approved, they are provided the funds required for the purchase of the home and additional funds provided to cover the work provided in the report submitted.
3 Are there any other costs I should know about?
The short answer is yes. In most real estate transactions there are going to be costs that buyers may not have expected. The difference in what those costs usually are has a lot to do with the type of home purchase.
One cost that's often overlooked with first-time buyers are closing costs. Closing costs vary by location, but they are generally anywhere between 3 - 6% of the total home purchase. For example, if you take out a mortgage for $500,000 you could pay anywhere from $15,000 - $30,000 in closing costs. Closing costs are determined by many factors, so check with your lender early to avoid any financial surprises later in the process.
To purchase a home, at some point you will have to involve appraisers and set up inspections. Costs for these services will vary, but consider $200 - $500 per appraisal as a general target for what to set aside in preparation.
New construction homes come with some other surprises that are often missed by first-time buyers. A good example of this is window blinds. New construction homes normally do not come with window treatments.
Get started Today
We love helping clients.Provide us with some basic information and a message and we'll get back to you as soon as we're able. Looking for a mortgage broker? Have questions about buying a home? You've come to the right place.