Not everyone can get into a home. A first time buyer might not be able to get a home because of the many hurdles they will have to leap. With that said, if a first time buyer has a stable job and relationship, has great credit and has overcome the temptation to carry a bunch of debt, then most likely they are in a great position to be in a home and very likely can overcome all the hurdles to get to that treasured closing date.

The first real issue is finding the financing. Almost no one in America has the resources to pay a home off in cash. The hardest part about being a first time buyer is usually they do not have a down payment sufficient to meet the twenty percent of the loan most banks like to have. A former member of the military can get a VA loan, but even then, most first time buyers aren’t veterans. A first time buyer should save up as much as they can and then invest in FHA loan that requires anywhere from 3.5% to 10% of the entire cost of the home down as a up front payment.

The second great hurdle for a first time buyer to overcome is their credit. To get a FHA loan a borrower will need to have over a 620 credit score and to get a conventional loan one will need over 700. Ways to get a great credit score are to sign up for things like the apartments utilities and to never miss a payment or to have the rent in ones own name or to get a small loan for a car and to make every payment on time and pay off the car. Showing a credit agency that the individual is good with their finances is critical to raising their credit score.

The third thing that a first time buyer will need to overcome is their debt. The financial institution will look at an applicant’s debt ratio. A debt ratio is how much debt an individual has or is paying out every month compared to how much income they bring in every month. The lender is not going to want the debt ratio to be above one third of the borrower’s income. So if a person makes one thousand dollars a month, they cannot be paying out more than three hundred dollars a month in debt or they will have a high debt ratio. So again, a potential borrower needs to pay down their debts as much as they can to make room for a mortgage.

The fourth thing a potential first time buyer needs to do is to get a fair appraisals. More and more banks are not providing the appraiser and buyers have to pay for the appraiser. The best thing the buyer can do is try hard to get a local appraiser who will accurately reflect the value of the home.

Lastly the buyer can do everything within their power to satisfy the loan conditions. When the offer is agreed upon, and an agreement is made, a bunch of contingencies will be signed and it really helps when the buyer does all they can to meet the contingencies.

Author Bio: Juhlin Youlien writes about Fountain Hills Real Estate and Paradise Valley AZ homes and other real estate like Peoria AZ homes for sale and Scottsdale Golf Proper