Being a first time home buyer is the greatest feeling in the world for everyone. There are two types of home loans, there is a first mortgage loan it can be 15 to 30 years. The second mortgage which is a home equity. First mortgage homes have a lower rate than the second mortgage. The best loan is a fixed loan.
To get a home loan you will need to find a real estate agent. This is a ways process. You should get recommendation from someone that just bought a home. Once you have contacted the real estate agent you will then bring all your information to them. You will need to bring your proof of income. You will need documents like W-2 and all of your bills like credit cards and any monthly payments that you make. All of these items will compare your income to your debt ratio and it will give them a idea on what you will be able to afford.
You will need to get pre approve before you can make any steps forward. Once the information is submitted to the lender. The lender is the one that gives you the money and the permission to purchase the home. The information than goes into the underwriting. The underwriting is the loan commitment. This process can take up to a month, depending if all the information is provided. Once you have loan commitment than you are free and clear to actually purchase the home that you want. The funds are all there for you. Good faith estimate and any kind of disclosures like your closing cost. Lenders are require to make sure that they sign you all the document that are proof of the loan. They must perform high quality service.
There are so many programs to finances a home. If your credit is bad you will have to meet a credit score to get approve. Having bad credit and trying to buy a home, you can go to a credit repair company to fix up your past debts. It could be up to a 12 month process depending on how your history is. You are better off to clean your credit when trying to buy a home then to buy a home with bad credit. If you buy a home with a bad credit score you will have high interest rates for the next 30 years.