While homeownership is a dream for many Americans, the process of securing a mortgage loan can be intimidating. First-time buyers are encouraged to enter the process with as much information as possible, which alleviates stress and can help increase the chance that you will be approved. 

A First-Time Homebuyer’s Guide to Mortgage Loans

1. First Time Home Buyer Program

We here at the ACBLA certainly understand the complexity of buying your first home and that is why we developed our First Time Home Buyer Program. Under our First Time Home Buyer Program you can choose from any on of our mortgage packages, fixed or adjustable. You can qualify for this program with as little as 5% down and money for closing costs. The only additional fee is a one time payment for Private Mortgage Insurance (PMI) that will be a part of your closing costs. Our mortgage officers will walk you through the entire process step-by-step making one of the biggest decisions of your life as simple as possible.

2. Your Credit Score Is a Significant Factor

In order to qualify for ACBLA’s First Time Home Buyer Program you must have a credit score of 660 or better. If a financial institution does not set a minimum for your credit score normally they will charge you a higher interest rate on your loan. That’s why you should check your score before you start shopping around for a mortgage.  Look for any inconsistencies or errors in your credit report and contact the credit bureau responsible for issuing the report to have them rectified. Depending on the nature of the error, it could improve your score.

3. Consider Getting Prequalified for a Mortgage

Being prequalified for a mortgage means that a lender has reviewed your finances and determined that you are eligible for a certain amount of money. While you’ll go through a more thorough process after finding a home, prequalification can make a significant difference in your shopping experience. If a seller must choose between you and another individual, and you’re equipped with prequalification, you will be considered the safer bet since they know you’re qualified to receive a mortgage loan. 

If you’re shopping for a home in Ford City, PA, and would like more information on mortgage prequalification, Armstrong County Building & Loan Association is happy to answer your questions. This financial institution offers the benefit of more than nine decades of experience, whether you’re seeking a loan with reasonable terms or are interested in setting up an IRA or CD. Check out their mortgage rates online or call (724) 763-7137 to schedule a session with a loan officer.