Here's A Guide To Financing For First Time Buyers

It is important for your first-time buyers to start preparing for financing their new home as early in the home-buying process as possible. Saving for a down payment and acquiring additional closing funds can take time. As your lending partner, GenNEXT Funding can guide them through the steps so that once they have a signed contract, they can successfully close on a loan. There are three important areas that we will address.

Your buyers' assets and the source of those assets will be carefully reviewed, especially if the purchase will involve a conventional loan. Assets will include funds in checking and savings accounts, employer-based savings accounts, and IRAs. Cars and boats are not considered because their value is hard to determine, and their equity is difficult to get to.

?The amount of debt that buyers carry is also part of the lending equation. If the amount of debt is comfortable for the buyers, then it can be safely factored on top of the debt that a new loan brings. Installment debt with 10 or fewer months remaining to be paid doesn't affect the approval process.

?Revolving debt, where the balance and payments can fluctuate from month to month, carries more weight as to whether a buyer can take on more debt. Credit has a great impact on obtaining loan approval because it reveals a borrower's ability to repay borrowed money and whether any debts are raising red flags.

?If you have a first-time buyer, contact us as soon as possible, and we can prepare them for the lending process ahead of time. Call GenNEXT Funding at 800.773.6531 or email us at [email protected].