Apply for a first-time home loan with a mortgage lender. Typically, first-time home buyers have low down payments, making an FHA loan a good option. FHA requires a minimum down payment of 3.5 percent, however the closing costs can be included in the loan, making the out-of-pocket funds from the borrower as low as possible.
The lender will need copies of recent pay stubs, bank statements and income taxes. Your income and employment will be verified by contacting your employer. Additionally, the property’s value will be determined via appraisal, which is an out-of-pocket fee for the borrower. Upon approval, you will sign paperwork at the closing table to complete the mortgage transaction.
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