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Step 1
Determine the price of a house you can afford given your income level. Calculate the monthly mortgage for a potential home. Consider in your calculation; monthly income, expenses, and money for savings. Remember to add real estate taxes and insurance premiums to the monthly mortgage payment.
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Step 2
Look for home loans in banks and credit unions. Compare a few institutions’ loan interest rates, terms, and loans documentation requirements. Ask about the financial institution’s credit scores requirements.
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Step 3
Learn about various home loans government guarantees programs. Find out if you qualify for any of these guarantees. For some of these home loans programs the down payment can be as little as 3% of the loan. Also, your credit can be less than excellent. Visit the government agencies websites for Home Path.com by Fannie Mae and HUD.
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Step 4
To get home loans guarantees, first review each agency’s eligibility requirements. Apply for the loan programs; you may apply for more than one agency at a time and submit documentation. The banks and credit unions can also assist you in qualifying for these government home loans programs.
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Step 5
Apply for a home loan with the bank or credit union of your choice. If you get qualified by one of the agencies, you will receive a certificate to present to the bank. This authorizes you to take the home loan guaranteed by the government. Complete the loan application process and sign and submit the papers to the bank.
