What are your mortgage options as a first-time homebuyer?

Buying a home is a big deal and can be an overwhelming experience, especially if you are a first-time homebuyer. To help you navigate the process, save money, and avoid common mistakes, we asked our expert here at Berks Homes, Gerald Kresge, Director of Sales, to provide us with information on what the market is doing and some options that can help a first-time homebuyer.

Now as a first-time homebuyer, you are probably concerned about a few things when looking to buy a home. These concerns are your monthly payments and the amount you want to put for cash down. Understanding all your financing options will be crucial in creating a monthly payment you can afford and the options you have with putting cash down.

Financing Options

The K-FIT and K-FLEX programs give the homeowner assistance with cash for closing and money for a down payment. Some programs can even provide up to 5% in assistance. These programs have certain guidelines, such as staying in your home for a period of time not being required to pay back the assistance.

You may want to look into some financing options regarding interest rates. Don’t think your only option is to put all your money as a down payment. There are options that will allow you to put 3% down and use the rest of your funds to buy down the interest rate to something more affordable or to pay off the PMI (Private Mortgage Insurance) which can save you money in the long run as well.

Lastly, you have the option of an ARM program. You can get a 7–10 year ARM program that will lessen your interest rate by 1-2%. The concern with an ARM program is you either have to pay it off, refinance, or sell and buy another home.

As a first-time home buyer, you are probably frustrated with the number of offers you’re putting in to try and buy a home. Well, you’re in luck because the next 3 months will be the best time to buy a home because there will be significantly fewer people in the market. And with knowing your financing options you will be in the best shape when putting in your offers!