|
Steps
to Obtain a First Time Homebuyer Loan
- Prequalify
for a Loan
Participating
Lending Institutions process all NHD
loans.
First, select a
Participating
Lending Institution.
Then, make an appointment with
that lender to determine your
eligibility and the purchase price of
the home for which you can qualify for
and which loan
type best meets your needs.
The
Participating Lending Institution will
also explain what fees
are involved and how much down payment
is necessary.
NHD can also provide a down-payment
loan, if needed.
- First Time
Homebuyer Education Class
The
Division cannot emphasize how important
homebuyer education is for first-time
homebuyers. The Division requires the
attendance to a HUD approved in-person class
for all applicants using NHD loan
programs.
- Locate an
Affordable Residence
Begin
looking for an eligible residence you
can afford based on the information the
lender provided.
Although not required, using the
services of a real estate professional
is recommended.
- Enter Into a Real
Estate Purchase Contract
This
agreement is the contract used to
purchase a home.
It specifies the legal
obligations of the seller and the buyer,
establishes a specific date of purchase
and sets the price of the home.
This contract should allow enough
time for a complete home inspection, (on
an existing home), home appraisal and
loan approval.
In this agreement, it should
state that if you are not satisfied with
the home inspection, or you do not
obtain a NHD loan, the contract is
cancelled and your earnest money will be
refunded.
- Apply for a Loan
At
this point you can formally apply for a
NHD loan through a Participating
Lending Institution.
After you have applied the lender
will request that NHD reserve funds for
the loan.
Only one application may be made
per applicant and funds are reserved on
a first-come, first-serve basis.
|
