If someone today were trying to get a first time home buyers loan, they’d find it more difficult to do then it was a few years ago.
Due to the subprime mortgage crisis, banks have tightened their lending standards and, because of this, the process in which to qualify is much stricter.
Due to the stricter qualifications, some banks have tightened the process, making it extremely more difficult to be qualified for a first time home buyers loan.
What are first time home buyers supposed to do then?
There are some lenders who prefer not to hand out first time home buyers loan because there is no proven documentation with first time home buyers. Instead, these lenders stick to previous homeowners to do business with.
In your quest to find a first time home buyer lender, you want one that eagerly wants to work with you.
If you are in the market for your first home, it’s recommended that you take advantage of the pre-qualifying mortgage setup before you make an offer on any home. With a pre-qualifying mortgage, you know how high a price you can go and you can hackle over the price with the seller.
When you’re already pre-qualified, the seller knows you mean business. And many times, this can equate to a lower selling/buying price.
When you are not qualified for a loan beforehand, it could take nearly a week to learn if you’ve been given the go-ahead by a lender and proceed with the sale. This is additional time the seller must wait and take the property off the market.
However, with a go-ahead already in place, this reduces the wait time and the seller knows you’ve already been approved. It’s in your best interest to get pre-approved from any of the best mortgage lenders who don’t mind giving out first time home buyers loans. There’s no obligation and no cost to you.