Teachers if you are buying in the next few days or in a couple of months, we put together a simple list of tips to help you understand your home buying options.
Create a Monthly Goal
First, determine the monthly payment amount you can make and still live comfortably. Start by figuring out your debt-to-income ratio by dividing your monthly expenses by your monthly income. Your DTI is important to your lender in determining eligibility but it’s also a great way to plan and set a goal for yourself by knowing how much you can add to your monthly expenses.
Save, Don’t Spend
Before talking to an expert and qualifying for grants, discounts, and down payment assistance, there are a few expenses that come with purchasing a home that you should prepare for. A savings account can be used to help furnish your new home and other expenses. Additionally, don’t open any new lines of credit or buy a car as this could hurt your credit and could affect your mortgage approval odds.
Build an Emergency Fund
Different from your regular savings, an emergency fund is typically 3-6 months’ worth of salary set aside in case of a job loss, car problems, a medical emergency, or other unexpected financial troubles.
Before you begin looking at homes, you’ll need to know how much you can afford. Getting pre-qualified by a lender will grant you access to a safe range to look at when shopping around. Also, keep in mind that you do not need to use the full amount you’ve been pre-qualified for. In fact, it’s typically a good idea to play it safe and borrower under your pre-qualified amount to account for moving expenses, new furniture, appliances, and any unexpected life changes.
Home buying assistance programs for teachers
Below are a few programs for teachers wanting down payment assistance or even grants and discounts
Teacher Next Door Teacher Housing Grant - The Teacher Next Door Teacher Housing Grant is a home buying program that provides grants to teachers to buy homes. Many teachers have saved thousands of dollars with this program.
The Homes for Texas Heroes Home Loan Program provides home buyer assistance for Texas teachers. First-time buyers can also apply for a Mortgage Credit Certificate (MCC). Texas Heroes who use our DPA and MCC assistance together! *Some exclusions apply. Contact your First Bank lender to learn more.
Conventional Loans are a good all-around option for anybody purchasing a home. They are a more clear-cut option than FHA and other government-backed programs. There are also specific low-down payment options available such as HomeReady, HomePossible and HomeOne, for first-time homebuyers.
FHA Loans are a great option for borrowers that do not have good or excellent credit. They are also an ideal option for teachers that are looking for a low-down payment.
USDA Loans for Teachers looking to purchase a home in rural areas, take a look at USDA loans. The USDA rural development loan offers buyers a no down payment mortgage option. Keep in mind that these loans are only available in areas deemed as rural development by the USDA. There are also strict income limits in place that should be considered.
Contact your First Bank Lender
Whether you are a teacher or not, there are many loan options available to you. Consider the options listed above to get you one step closer to buying your dream home! For more information about all of the home buying options available to you, contact your First Bank lender to learn more.