Articles
First Time Home Buyer Tips
Make the Dream of Buying Your First Home Come True
Knowing what to expect when buying your first home is the first step in having your dream become a reality. Chances are, if you're currently searching for a home, you don't need anyone else to tell you about how the market has changed. Buying your first home doesn't have to be as daunting as it sounds. Preparing yourself in advance, with a few key pieces of information, can reduce a lot of the anxiety and fears of being a first time buyer.

First... Know what you can afford
It may seem pretty straight forward but there are a lot of variables to consider when making your first step towards securing your first home mortgage. Obtaining the proper financing isn't as easy as it used to be and mortgage lenders want to be sure that you are going to be prepared to handle the responsibility of a home loan. You should be completely aware of your budget well before you start searching for the perfect first home. By doing so, you can focus on the houses that will work for you.

Ask yourself these key questions:
Have you considered closing costs?
Have you considered changes to your income?
i.e. job changes, etc. Are you including homeowners insurance, possible community association fees and property taxes into the monthly payment estimate of your mortgage?
Have you taken into account fixed monthly expenses, as well as any revolving credit debt?

Many online sites offer mortgage calculators to help you figure out the best range for your budget. Hint: Be honest and you will get a more complete picture of what type of mortgage loan you can afford. Here is a link to a few helpful mortgage calculators from Franklin Advantage, Inc.

Second... Your Credit is Very Important for Your First Home.
Again, this is probably something you already know, but the important thing to note is that the sooner you know your score the easier it will be to fix it (if necessary). Your credit score is going to have a direct effect on the type of mortgage loans and interest rates you will be offered, so find out where you stand right away.

There are options all over the web for finding out your score but here are a few links to major sites:
www.experian.com
www.equifax.com
www.transunion.com
www.myfico.com

If your score is a little bit lower than what you anticipated, try these simple tips to help you improve your credit for better loan results.

Pay ALL your bills on-time.
We've all been there. It's easy to lose track of small bills and then try to play catch up the next month. Just remember, your creditor does not lose track. Late payments are reported to credit scoring agencies. Your payment history is a significant part of your credit history. Late bills, accounts in collections, or bankruptcies will all have a negative impact on your credit.

Stay on top of your balances.
The closer you are to your credit limit, the more negatively it will affect your credit score. Credit monitoring agencies see your overuse of credit as a potentially negative indicator of your credit worthiness. Keep your balances low or better yet, pay them off every month.

Be mindful of your credit history
A long and well established credit history is another indicator that creditors use to establish your credit worthiness. If your new to the game, just make sure you pay your bills on time and keep your balances low to offset any negative repercussions of a short credit history.

Don't apply for New Credit
If you're shopping for your first home and hoping for the best mortgage rate and home loan program, now is not the time to be opening new lines of credit. Each time you open a new line of credit it is noted on your credit history. Too many inquiries in a short amount of time can have a negative effect on your credit score.

You can find more information as well as these tips at the following link :
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm

And finally... There are Many Options for Your First Home Loan.
At Franklin Advantage, Inc., we want you feel comfortable buying your first home. There is a wealth of mortgage loan knowledge available at your fingertips. Research the options BEFORE you look at a specific home loan program. The more you know before your first purchase, the less likely you will find yourself in the wrong type of mortgage loan. For more information on Franklin Advantage, Inc.'s simple approach to helping you afford your first home, Franklin Advantage Loan Programs.