First Time Buyer Programs – How Do They Work

Getting started as a first time home buyer and learning what is available in first time home buyer programs, can be a daunting task. With literally hundreds of different types of home mortgages, thousands of homes for sale to choose from, and all the details included in a real estate transaction, it is no wonder people get frustrated. The following guidelines will assist the first time homebuyer in learning how to best approach the process, making it work for them instead of the other way around.

1. Hire a buyer agent. A buyer agent, a realtor who works for the buyer, will not only negotiate, manage the paperwork and the details for the buyer, but also helps the buyer understand their options, confirm market value of homes the buyer is interested in, and answer all questions.

2. Meet with a mortgage officer. A mortgage officer, also called a loan officer, will review the buyer’s credit, income and debt, and then provide the buyer with the amount they are "approved" for a loan. The loan officer will also review with the buyer: first time buyer programs, first time home buyer assistance, down payment first time home buyer, and HUD first time home buyer programs.

3. Become familiar with what homes are on the market. There are several websites that allow first time home buyers to search for homes for sale or register for free HUD home listings.

4. Make a list of questions and find the answers. A buyer agent will be able to answer most buyer questions, but it is a good idea to conduct other investigation into the first time home buying process, as well as first time home buyer programs. Homeownership counseling is a helpful option for answering HUD first time home buyer questions in general and to qualify for certain closing cost programs.

Be an informed first time home buyer. Hire a buyer's agent, meet with a mortgage officer, learn what is available on the market and move forward to become a home owner.