Section 4: Conventional Refinance First-Time Homebuyers
NOTE: Maybe you are looking to do a Conventional Refinance and your home and this is the first and only home you have ever bought. Although that does fit the criteria for a first-time home buyer it is important to remember that Conventional Refinance are not traditional first-time home buyer programs. Although this section will talk about the benefits of being a first-time home buyer, please do not confuse this program if you are indeed a first-time homebuyer.
Purchasing Your First Home
Purchasing a first home is an exciting milestone in any person's life. For some, the process may also seem very intimidating. Buying a home can be challenging for a first timer. After all, there are so many steps, tasks, and requirements, and you may be anxious about making an expensive mistake. But first-time homebuyers actually enjoy some special advantages created to encourage new entrants into the real estate market. Please don't hesitate to give us a call or start your quote online.
How Much Home Can I Afford?
Typically, the first question would-be homebuyers ask themselves is, "What can I afford?" There are many factors that determine what a reasonable mortgage payment should be for an individual, including annual income, existing debt payments, down payment (if any), as well as additional costs like homeowners’ insurance and housing association fees. Orbit Home loans provides a handy VA Loan Payment Calculator to help homebuyers find a monthly payment that's comfortable for them.
Conventional Refinance Payment Calculator →
Contact an Orbit Home Loan Professional
What Type of Loan Should I Get?
There are many financing options available for homebuyers out there, each with their own unique advantages. For most borrowers, we at Orbit Home Loans highly recommend the working with one of our loan officers to find out what best fits your needs. Of course, if you are still researching then you can continue to explore our many loan options here on our website.
Advantages of a VA Streamline:
1. No interest rate surprises
With a fixed-rate mortgage or a conventional loan, the interest rate won’t change for the life of your loan, protecting you from the possibility of rising interest rates.
2. The lowest fixed rate
Conventional mortgages may offer a lower interest rate and Annual Percentage Rates (APR) than other types of fixed-rate loans.
3. Fewer hoops to jump through
Conventional mortgages may require less documentation than FHA loans or VA loans, which could speed up the overall processing time.
4. Cost to refinance
If you’re curious about the costs associated with refinancing, use our mortgage refinance cost calculator to get an estimate of how much it will cost.
5. Net Tangible Benefit
The FHA actually requires that there be some advantage for the borrower if they go ahead with a Streamline Refinance. If refinancing makes it easier for you to make your monthly payments on time, then the FHA is off the hook for reimbursing your lender in the case of you defaulting on your mortgage. For a reduction in the term of the mortgage to be considered a net tangible benefit, certain things must apply. The remaining amortization period of the current mortgage bust be shortened, the new interest rate should not exceed the original one, and the principal, interest, and MIP payment of the new mortgage must not exceed the combined amount of the existing mortgage by more than $50.
Getting Preapproved
The first step toward securing your loan is getting pre-approved. This involves a prequalification process, where a loan officer assesses the homebuyer's financial situation and determines what they qualify for and is followed by the homebuyer submitting a completed loan application to the lender for approval. Orbit Home Loans offers two ways to begin this process: You may either call us directly or reach start the application below to get a complementary call.
Contact an Orbit Home Loan Professional
Finding a Real Estate Agent
When using a Cash-Out Refinance, it's important to find a real estate agent that not only knows the intricacies of the Conventional Refinance Benefit Program, but also understands the specific needs of borrower. Orbit Home Loans has put together a network of friendly real estate agents for just this purpose.
Learn More about Orbit Realty →
Helpful Resources
- The Guide to Conventional Refinance Homebuying
Browse our Conventional Refinance homebuyer education and resources page. - Conventional Refinance Home Loan Mortgage Payment Calculator
This free Conventional Refinance Home Loan calculator gives you a snapshot of what your monthly payments could be with a VA Loan. - Conventional Refinance Glossary
Use our glossary to reference any unfamiliar terms or acronyms.
As a first-time homebuyer, you have many options when it comes to purchasing your home - including homes in high-cos