First Time Home Buyer

Before buying your first home, there are many considerations and decisions that need that you should closely evaluate. Buying your first home is a commitment that could mean serious lifestyle changes and employing new budgeting practices. However, the advantages are tremendous and can often be the beginning of a great financial investment. If you have had a desire to buy a home of your own, you are like the thousands before you that were looking to own a part of the American dream. Buying your first home is not an easy decision, nor is it something to be taken lightly. With the help of Nations Choice Mortgage, we will be able to help prepare you and inform you of the many options that are available to make this an easy and trouble-free process.

Credit Rating

It may not surprise you but your credit rating plays a crucial role in whether you will or will not be able to buy your first home. Banks and lenders are very wary of lending money to people who they deem to be high risk borrowers. Credit restrictions are tight and a good credit rating is a must if you want to be able to get a mortgage with good interest rates.

A credit rating or credit score is measured by numbers anywhere from 0 to 850. The higher your number or score, the more likely you are to be considered responsible when handling your finances. This means that the higher your score, the more likely you will get a mortgage and with good interest rates. When you pull your credit score don’t be worried if it’s not at the top of the scale, getting a score of 850 is near impossible. However, 720 and above is considered great and will often reap the benefits of better interest rates and more lenders willing to provide a home loan.

There are ways to maintain a good credit rating and one of them is to always pay bills on time and never financially overextend your budget. If there are times when you feel you may be late in paying the bills, make sure you call the creditor ahead of time and try to work things out beforehand. This increases the chance that they won’t report the late payment to credit agencies.


If you pulled you credit score and found that it is within the recommended range to get a mortgage then the next thing you will need to consider is working out a budget and minimize your expenses. The ideal situation is that the cost of the monthly mortgage payments should not be more than your one week’s income. However, each lender has special ratios that are used to calculate your budget. These ratios determine how much money you have coming in VS going out. If the ratio outcome is higher and considered riskier than the mortgage lender may not provide you a loan. Consider this a good health check of your budget, if you are spending too much money than it’s riskier for everyone to consume additional payments for a mortgage. If you find yourself in this situation then you still have options to minimize your debts. Try consulting a debt specialist or payoff credit cards and expenses so that your monthly payments are lower. These tactics should help lower your budget and balance the debt to income ratios when applying for your first home loan.

Finding the right home and Real Estate Agent

Finding a good real estate agent is important. You need to make sure that the agent has a good reputation and is willing to work with first time home buyers. It is always a good idea to ask family and friends for recommendations. Never sign a contract with a real estate agent for more than three months because this could keep you from replacing the agent if you are not satisfied with his or her service. It is also important not to be pushed into making a decision regarding the first home that has been shown to you. Remember that the agent earns 3% of the purchase price so it is ok if they have to do work and earn it.

One of the biggest frustrations for people buying their first home is trying to find the perfect house. This can be difficult for many first time home buyers because they do not have the resources to invest in their first real estate purchase. Most first time home buyers buy a house that is within their budget and basic requirements until they can save up enough to invest in a home that has more upgrades. Usually, it is the succeeding home that is their dream home.

However, in today’s market that may not always be the case. Take your time and view homes, in person and online, to determine the price ranges and amenities that are available. If you find your dream home right away, do not hesitate to consider making an offer for the home. It’s important that your realtor helps with providing you information regarding the home that you find and makes sure that it is the best option before making an offer.

Making an Offer on a Home

Once you have found a home that you like and are ready to make an offer, your real estate agent will prepare the paperwork submit the offer to the sellers. An offer will list the amount that you are willing to pay on the home, any contingencies you may have, and the time frame for acceptance. The agent will then give the offer to the agent of the home owner.

Your offer may be countered, rejected or accepted. If the home owner counters, he or she will return your offer with a new asking price and possibly new contingencies. Then it becomes your turn to counter, reject, or accept. Most people selling their homes have a higher list price because they are expecting to come down on the price during negotiations. When you are making an offer, make the effort to understand that the home is very personal to the owner. You do not want to be rude by offering a unreasonably low offer or insult the amnesties the home may offer.

Cost of Purchasing a Home

There is a lot more to buying a home than just the monthly mortgage payments. You will find that there are closing costs that you will need to become familiar with during the closing process of your new home. Closing costs are fees associated with the processing of the transaction and facilitation of the mortgage loan. There are many variables involved in the calculation of closing costs and Nations Choice Mortgage will be able to give you an approximation based on what is common in the area of your new home.

Closing costs involve such items like appraisals, transfer fees, inspections, mortgage fees, financing points, attorney’s fees and in most cases you will need to have a down payment to cover these costs. In general, the closing costs may be around 6% and 8% of the home’s purchase price. Make sure that whatever the price range that you are planning to buy a home that you have at least this amount in savings to pay for the closing costs.


Financing for your first home will come in the form of a mortgage. Mortgages are usually 15, 20, 25 or 30 year loan agreements. When it comes to first time home buyer mortgages, there are usually two options: an FHA mortgage or a traditional mortgage.

During the closing process, your title company and mortgage lender will complete many of the final steps including a title search, filing for transfer taxes, ordering surveys, reviewing paperwork, and many others. These services help ensure that there are no problems associated with the purchase of your first home. Closing can take anywhere from two to six weeks if everything goes smoothly.

When trying to understand all of the financing options available it can become overwhelming. Nations Choice Mortgage can help you with all your mortgage financing needs. We have a very dedicated team of professional mortgage professionals who are always ready to explain mortgage information to you in a language that is easily understood.

First Time Home Buyer Conclusion

Buying a home can be less stressful if you have people who are ready to help you with your financing needs. Nations Choice Mortgage has home loan options that will help you decide home loan option is best for you. You will be given all possible information so that you can compare other loan options, interest rates, and points so that you can make an informed decision.

You can feel free to contact Nations Choice Mortgage anytime with your questions and you can be sure to receive prompt and informative replies. Be it assistance regarding how to improve your credit score or comparing all the possible mortgage options that are available for you, Nations Choice Mortgage will be more than happy to happy to help you with your first home purchase.

How to buy your first home:

If you are considering buying your first home, Nations Choice Mortgage can help you begin the process of applying for a loan. Nations Choice Mortgage has a well-trained team of mortgage specialists that are always available to help you make the best decision with your mortgage-related needs. We understand that choosing the right type of mortgage for your needs is a big decision and we are always here to help you make an informed choice.

To begin applying for a home loan all you need to do is search rates and you will receive a personalized interest rate quote. You can then choose the type of loan and interest rate which fits your needs best. Your mortgage application can also be completed online using our advanced online mortgage application. If you have questions anytime during the online application process, feel free to contact us and we will provide you with all the information you need.

Instant Mortgage Rate Help

Loan Amount: How much do you want to borrow? Example: 150,000 (You can borrow up to 100% of the purchase price of your home. You will find better interest rates at 95%, 90%, and 80% progressively.)

Property Value: This is the purchase price of your property or your best estimate of the appraised value of the property. Example: 175,000.

Loan Type: Selecting Refinance WITH CASH OUT may increase your rate. If you want some extra cash to pay the closing costs on your new loan, this would NOT be considered receiving extra cash.

Escrow/Impounds: Allows you to pay 1/12 of your annual property taxes and homeowners insurance with your mortgage payment each month. Escrowing your taxes and insurance will lower your points by .25%

Property State: Specify the State where the property is located

Property County: Specify the County where the property is located

Todays Rates: These rates are based on the following criteria..

Instant Mortgage Rates

Loan Amount
Property Value
Loan Type
Loan Purpose  
Property Type
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