How to prequalify for a home loan as a first-time buyer.

What does it mean to prequalify for a home loan?

As you prepare to buy a home, you’ll likely come across the term “loan prequalification.” This is the first step in the mortgage process, where a lender provides a ballpark estimate of how much house you can afford.

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What is an FHA loan? A Federal Housing Administration (FHA) loan is a home mortgage that is insured by the government and issued by a bank or other lender. Unlike most conventional loans, the FHA doesn’t require a large down payment. You can put down as little as 3.5 percent of the purchase price of the property. And furthermore, FHA loans have more relaxed credit requirements for applicants, making them an attractive option for first-time home buyers. Continue reading “What is an FHA loan?”