Buying a home is a very stressful and daunting task. The best way to overcome the first time buyer jitters if by getting educated about the process. There are tons of resources available for free from the National Association of Realtors, HUD, Fannie Mae, and your favorite lender or Realtor.
Many people tell you incorrectly that the first step is getting approved from a lender. Although this sounds like good advice, how do you know which lender? Do they offer special programs for first time homebuyers, do they offer any grant programs, do they deal with alternative credit, etc.?
The advice of just going to a bank to get pre-approved is well intentioned but as poor a choice as only walking onto a single car lot to buy a car. Think about it, would the local Ford dealer tell you about the special going on down the street at the Chevy dealer? Would they tell you they buy their used cars at the auto auction to mark up and sell to you?
If you walk into XYZ Bank, you will be dealing with employees of that bank trained only to sell their products. Some big banks are told specifically not to use other products if they have in house products.
Therefore, I suggest dealing with a local housing agency that offers unbiased home ownership counseling. For example, when I teach the real estate portion of these classes for the Finally Home Program for HUD, I am not even allowed to promote myself as Jim Paulson the Realtor nor can I promote the competitive benefits of using my company (Progressive Realty Corporation). I am supposed to talk in general terms so that other Realtors still feel comfortable sending their clients to these classes.
Specifically in Boise, Idaho; there are some great programs to consider like:
- Boise City Affordable Housing Program;
- Neighborhood Housing Services;
- Idaho Housing and Finance Association;
- Rural Economic Community Development programs;
- Many banks also have niche programs available for low to moderate income families!
Ask your lender or Realtor if these types of programs exist in your city/state. You might be very pleasantly surprised! You have lots of choices in Realtors, lenders, inspectors, and title companies that are there to help you. Make sure that you team up with ones that are used to working with first time buyers!
Good luck in your quest!
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