Navigating the mortgage process as a first time home buyer can be a daunting task. At Newfi, we strive to make your first home purchase a smooth experience. With our simple online pre-approval process, we’ll listen and guide you throughout the mortgage process.
How to get a mortgage as a first time home buyer
Planning for your mortgage is an essential part of the home buying process. Here’s how getting a home loan fits into the buying process:
- Prepare Yourself. Before you get pre-approved for a mortgage, it’s best to take a look at your current situation to determine if you are ready for homeownership. To prepare you for the journey ahead, ask yourself these questions:
- What is my credit score, and how will it affect my chances of buying a home?
- How much home can I afford?
- What mortgage payment can I expect?
- How much do I have for a down payment and closing costs?
Once you’re confident in that regard, the next steps are to get pre-approved and evaluate each of the loan options available so you can get the combination of rate, term, and payment that’s right for you.
- Get Pre-Approved. By getting pre-approved, you’ll learn what price range, interest rate, and loan programs you qualify for. You can also get an estimate of your monthly mortgage payment. This is also a good time to gather documented proof of your income (paystubs and tax returns), assets (bank and savings accounts), and debts (car loans and credit cards), all of which you will need for your mortgage application.
- Find a Real Estate Agent. Already have a real estate agent? Great — start shopping! If not, Newfi can match you with an agent who can help you find exactly what you’re looking for. Contact us for details.
- Finalize Your Application. Once you go under contract on your home, we’ll gather the final pieces of information to finalize the application for your mortgage. You’ll be in constant communication with your Newfi Mortgage Advisor to ensure that you are informed about the progress of your loan.
- Close the Loan. Once your loan is approved, you’re ready to close on your new home! You’ll meet with a closing agent to sign on the dotted line and get the keys to your first home!
For more information about purchasing a home with a mortgage, see our First Time Home Buyers Guide (.pdf, 1.7 MB).
What are mortgage options for first time home buyers?
Newfi offers a variety of loan programs for first time home buyers:
- FHA Loans – Buy a home with as little as 3.5% down, flexible credit requirements, and options for minimizing out-of-pocket closing costs
- 30-Year Fixed Rate – The classic mortgage with a long repayment period and monthly payments that won’t go up
- Adjustable Rate Mortgages – An interesting option with a low initial mortgage rate if you will move or refinance in a few years
- 40-Year Mortgages – Get a very low, interest-only payment during the first 10 years, after which it turns into a 30 year fixed
Why trust Newfi Lending with your home loan?
Newfi is a direct lender with years of experience in home loans. We’ve earned a five-star rating from LendingTree for our low rates, fast processing, and excellent customer service. Give us a call at (888) 316-3934 and see just how friendly we are!
Frequently Asked Questions For First Time Home Buyers
How much house can I afford?
Every situation is different, but a great place to start is by asking how much are you comfortable paying each month. Speak with a Mortgage Advisor to find your price range.
As a first time home buyer, how much do I need for a down payment?
The minimum you need for a down payment will vary based on the loan program you qualify for. For conventional loans, your down payment can be as low as 3% of the purchase price, though only part of the money down can be a gift from your parents, relatives, or your employer. With FHA loans, 100% of your down payment can come from gift funds, and your down payment can be as low as 3.5% of the purchase price. It’s also important to know that if your down payment is less than 20%, your monthly payment may include mortgage insurance. At Newfi we offer multiple options for low down payment mortgages, so call us at (888) 316-3934 and we’re happy to compare your options.
Are there any tax credits for first time home buyers?
One of the many perks of homeownership are tax credits and deductions for your home purchase. All homeowners are eligible to deduct the interest from your mortgage payments, points, and property taxes from your federal income tax filings.*
* Newfi does not provide tax or accounting advice. This web page is not intended to provide, and should not be relied on for, tax advice. Consult your tax advisor before engaging in any borrowing transaction.
How do I get pre-approved for a mortgage?
You can quickly get pre-approved online or over the phone by contacting a Mortgage Advisor at (888) 316-3934. To get your personalized pre-approval letter, you’ll need to provide the following information:
- Personal & Financial Information – We’ll ask you for your contact information, employment history, assets, and debt situation.
- Desired Home Location – Where do you want to buy your new home? If you haven’t found a home yet, we’ll need the city where you’ll want to live.
- Credit Check – We’ll ask you to allow us to run your credit report to provide you with an accurate interest rate for your new home.
Learn more about getting pre-approved.
How does my credit score affect my mortgage interest rate?
Higher credit scores lead to lower interest rates while lower credit scores lead to higher interest rates. However, credit scores can change over time, so if your score is not where you would like it, you can build your score up through good payment habits, paying down debt, and correcting errors on your credit report. If you have a lower score — say, under 620 — check out our low credit mortgage options.
What documents do I need to apply for a mortgage?
As a home buyer, you’ll need to provide documentation on where you’ve lived, employment history, monthly income and debts for the last 2 years (24 months).
How do I make an offer on a house?
Once you’ve found your home, you will work together with your real estate agent and Newfi Mortgage Advisor to structure the right offer for your needs, time frame, and budget.