A recent report revealed that most first-time homebuyers are not fully knowledgeable of the homebuying process. When you take out a mortgage as a first-time homebuyer, you have to deal with tons of confusing industry-related terminologies, and it is critical that you fully understand them simply because you’re making a large investment. Fortunately, there are several government agencies that provide helpful and reliable information to guide you in achieving your American dream of homeownership.
A recent Framework report revealed that 55 percent of homebuyers “wished they had an independent advocate to coach them through the process of home buying and homeownership.” Buying a home on a mortgage is indeed an overwhelming process especially for first-time homebuyers who have zero to very little knowledge on how the mortgage works. While it is ideal to consult with a real estate agent or a professional loan advisor, you may want to learn basic information about mortgage first to help you come up with smart questions even if you’re a first-time homebuyer. The federal government has several agencies that provide information to help you understand the mortgage and the homebuying process.
HUD can walk you through the homebuying process
The Department of Housing and Urban Development, commonly known as HUD, not only makes housing affordable, but it also provides various helpful information to prepare potential homebuyers. HUD can help you understand your finances and how much home you can afford. Don’t know how to shop for a home? HUD can help you come up with a home wish list and home shopping checklist to help you find your dream home. The agency has also a list of state-specific programs that may suit your homebuying preference. If you think you’re being discriminated against as a homebuyer, HUD has a brochure about the Fair Housing Act for you to better understand your rights.
CFPB can make you a mortgage expert as a homebuyer and homeowner
The Consumer Financial Protection Bureau (CFPB) has compiled important mortgage key terms to make any first-time homebuyer feel like a mortgage expert. Fixed-rate mortgage, adjustable-rate mortgage, and loan estimate are just some of the key term definitions you’ll learn from the CFPB. The agency provides comprehensive information and tools about home buying until you become a homeowner. Once you become a homeowner, the CFPB educates you on the common issues and your rights if you think you’re having difficulty with your mortgage payments. The CFPB can help you understand your options to possibly protect your home from foreclosure. Aside from mortgage information, the CFPB has information to help you avoid mortgage scams.
VA is the go-to site for Veterans and servicemember homebuyers
Eligible Veterans and active duty servicemembers who want to obtain VA-backed home loans may visit the U.S. Department of Veterans Affairs (VA) housing assistance website for them to understand VA-specific mortgage information. There are several loan types that you can explore depending on your eligibility. The agency will also help you determine if you can apply for a Certificate of Eligibility, or COE. Securing a COE is the first step you’ll need to do if you want to buy a home using your VA home loan benefit. This is also the reliable site you have to browse if you’re buying a home as a surviving spouse of a Veteran.
FHFA helps you get smart on the housing market
The Federal Housing Finance Agency (FHFA) gives a mortgage education refresher if you’re ready to purchase a home as a first-time homebuyer. Because taking out a mortgage is the usual recourse to homebuying, the FHFA has invaluable tips to help you understand federal rules so you can make sound decisions when shopping for a mortgage.
Level up your home buying experience even when you’re a first-timer
Reading mortgage and home buying information from these government sites can help you prepare as a first-time homebuyer. It is normal for you to encounter terms that you find difficult to understand. Government sites are reliable sources of information about the homebuying process. However, as a first-time homebuyer, you may find many of the terminologies too complicated. If you think you’re in such a situation, consulting a professional loan advisor could be your best recourse to help you further understand your options.