First Time Buying a House?

Find all your questions about Mortgages answered here!

What type of loan you should get.

As a first-time homebuyer, you might not know where to start. Applying for a mortgage can seem complicated, but the process isn’t as convoluted as you might think. When deciding between different types of home mortgage loans from a variety of mortgage lenders, there are a few factors you should take into consideration, including:

The loan amount.

Think about your loan amount, answer a few questions and get your lowest eligible rates.

How much you can afford.

We'll look at your income and outgoings to see if you can keep up with payments.

What you need to apply for a loan.

Your home is one of the largest purchases of your lifetime. We will help you with everything you need to apply.

Different types of mortgages

When you’re ready to apply for a home loan, you’ll need to decide what type of mortgage is best for you. First-time buyers can benefit from a variety of loan types, from conforming fixed-rate loans to government-assisted VA loans.

Fixed-Rate Mortgage

A fixed-rate mortgage is the most common kind of home loan. It offers consistent rates that don’t change throughout the life of the loan. You can get a fixed-rate mortgage with a loan term up to 30 years.

Adjustable Rate Mortgage (ARM)

With an adjustable rate mortgage (ARM), you will enjoy low initial interest rates for a specified number of years. Once this term ends, your monthly mortgage payments will start to rise and fall with the market rates. ARMs can be a good option for homebuyers who plan on selling or refinancing their home in the next five years.

FHA Loans

FHA loans can be a good option for first-time buyers, as they allow down payments as low as 3.5 percent. Sponsored by the Federal Housing Administration (FHA), these mortgages are forgiving of low credit scores.

VA Loans

If you or someone in your immediate family is a veteran or current member of the U.S. Armed Forces, you can apply for a VA loan. These mortgages typically offer lower monthly payments than conforming home mortgage loans. VA loans don’t require a down payment on the home, making it an affordable option for first-time buyers.

Figuring out how much you can afford

Buying real estate is a great investment for you long term. When you’re on the hunt for your first home, you’ll want to figure out how much you can afford. There are plenty of components to consider when finding the right property, such as:

Household income

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptas harum, hic officiis commodi

Monthly automobile, credit card, student loan and other payments

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptas harum, hic officiis commodi

Loan term

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptas harum, hic officiis commodi

Annual loan interest rate

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptas harum, hic officiis commodi

Approximate monthly property taxes

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptas harum, hic officiis commodi

Estimated homeowners insurance

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptas harum, hic officiis commodi

Key Features

In addition to these costs, most homebuyers are required to pay closing costs on the property, usually between 2 and 5 percent of the home’s purchase price. Depending on your mortgage lender and loan type, you might be able to negotiate lower fees at closing.

Bootstrap 3x

Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptas harum, hic officiis commodi

Home loan qualifications

When you apply for fixed-rate mortgages, you will need to share some information with our team of underwriters. When pricing our mortgage rates, the major factor we look into is credit score. Although borrowers with low credit scores may qualify for FHA and VA loans, they will likely not be considered for a fixed-rate loan. Typically, buyers with a FICO score under 620 will have a difficult time applying for a conventional mortgage. Those with high credit scores should have no trouble being approved for a home loan. In fact, higher credit scores oftentimes lead to lower monthly rates.

In addition to meeting this credit score minimum, you will likely need to have the right debt-to-income ratio (DTI). To calculate your DTI, you’ll want to take into account all of your monthly debt from credit cards, student loans, child support and auto payments. Then you can divide this amount by your gross monthly income. Your result is your DTI, a figure that lenders use to consider whether or not you can afford to take on monthly mortgage payments.

Finding the right lender...

Since you might have your mortgage for up to 30 years, it’s important to make sure you’re aligning yourself with a knowledgeable, approachable lender. Especially as a first-time buyer, you will feel more at ease working with a bank you can trust.

At Nationwide Mortgage Bankers, we strive to provide our borrowers with a transparent, personalized experience. For more information on the mortgage process, or to find out more about our mortgage products, view our diverse offering of Services, and Get Started on your home loan preapproval application today.

Nationwide your local lender.

We provide our customers with the absolute best mortgage programs, refinancing is much more agile and simple saving you time and paperwork.

Nationwide Mortgage Bankers, Inc. BBB Business Review

More information

Licensing

Alabama / Arizona / California – DBO / Colorado / Connecticut / Delaware / District of Columbia / Florida / Georgia / Illinois / Maryland / Michigan / Mississippi / Montana / New Hampshire / New Jersey / New Mexico / New York / North Carolina / Ohio / Oklahoma / Oregon / Pennsylvania / Tennessee / Texas – SML / Virginia / Washington / Wisconsin.

More details about our presence and Licensing

This site is not available in New York. No mortgage loan applications for properties located in the state of New York will be accepted through this site through NMB or Nationwide Mortgage Bankers, Inc.

Disclaimer

DBA NMBHOME LOANS INC. in AL, AZ, FL, GA, IL, MT, OK, PA, and TX. Nationwide Mortgage Bankers, Inc 68 S Service Rd Suite 340. Melville, NY 11747 is Registered with the Nationwide Mortgage Licensing System NMLS # 819382. New Jersey Residential Mortgage Lender License #819382; Licensed Mortgage Banker – NYS Department of Financial Services #B501004; HUD Approved Title II Supervised Lender # 3113200005. Nationwide is not acting on behalf of or at the direction of HUD/FHA or the Federal Government. All loans are subject to Credit and Appraisal Approval. Program, Rates, Terms, and Conditions are subject to change without notice. This is not a commitment to lend.