Buying your first home is exciting, but it can also feel overwhelming. Between mortgage rates, down payments, closing costs, credit requirements, inspections, appraisals, and choosing the right loan program, there is a lot to understand before you make an offer.
At Capital Funding Mortgage, we help first-time home buyers throughout Newtown, Bucks County, and surrounding Pennsylvania communities understand the mortgage process from beginning to end.
I’m John Madden, owner of Capital Funding Mortgage. I have been helping borrowers with home financing for more than 25 years, and I also live and raise my family here in Newtown. When you work with my company, my goal is not simply to get you approved for a mortgage. I want you to understand your options and feel comfortable with the financial decision you are making.
For most first-time buyers, the best place to start is with a mortgage pre-approval.
A good pre-approval can help you determine:
Getting pre-approved before looking seriously at homes can also make you a stronger buyer when it is time to submit an offer.
One of the most common misconceptions is that you need a 20% down payment to buy a home.
You usually do not.
Depending upon your qualifications and the property you are purchasing, there may be mortgage options allowing considerably smaller down payments.
The right down payment is not necessarily the smallest possible down payment. We can compare different options and show you how changing your down payment affects your monthly payment, mortgage insurance, closing costs, and cash reserves after settlement.
Keeping adequate savings after buying your home can be just as important as determining how much you can put down.
There is no single mortgage that is best for every first-time buyer.
Depending upon your circumstances, we can evaluate programs such as:
Conventional financing can be a strong option for borrowers with good credit and may be available with relatively small down payments.
FHA financing can provide another option for buyers who have limited funds available for a down payment or whose credit profile may not fit conventional loan guidelines as well.
Eligible veterans, active-duty service members, and certain surviving spouses may qualify for VA financing, which can provide significant benefits including the possibility of financing a home without a traditional down payment.
There are conventional and government-backed mortgage programs designed to make purchasing a home possible without saving 20% of the purchase price.
We can compare the programs available to you rather than automatically placing you into one particular type of mortgage.
Some first-time buyers may qualify for homebuyer assistance programs based upon factors such as income, property location, purchase price, and the particular mortgage program being used.
These programs can change over time and eligibility requirements vary.
Rather than assuming you qualify—or don't qualify—we can review your situation and determine whether there are programs worth considering when you are preparing to purchase.
Your mortgage payment is more than simply principal and interest.
Your total housing expense may include:
This is particularly important when shopping for a home in Bucks County, where real estate taxes can vary significantly from one municipality or school district to another.
Before you make an offer, we can help estimate the complete monthly housing expense so you have a better idea of what the home will actually cost each month.
Many first-time buyers delay contacting a mortgage professional because they assume their credit is not good enough.
You may have more options than you think.
If your credit needs improvement, it can be helpful to find that out before you begin making offers. Sometimes relatively small changes can improve your mortgage options.
We can review your situation and explain where you stand without making the process unnecessarily complicated.
Not necessarily.
Paying down debt can sometimes improve your ability to qualify, but using a large portion of your savings to eliminate debt immediately before purchasing a home is not always the best strategy.
For example, keeping additional money available for your down payment, closing costs, emergency reserves, moving expenses, or repairs may sometimes be more valuable.
We can look at the numbers before you move money around and help determine which approach makes the most sense.
Buying your first home in this area presents some unique considerations.
Purchase prices, property taxes, homeowners association fees, property types, and housing availability can vary considerably between communities.
We regularly assist buyers purchasing homes throughout Bucks County, including communities such as:
Because I live in Newtown myself, this is not simply another market on a list of locations we serve. It is my own community.
Although every transaction is different, the process generally looks like this:
We discuss your income, assets, credit, employment, expected purchase price, and the amount you are comfortable spending each month.
We review the necessary documentation and determine the mortgage amount and programs for which you may qualify.
You can work with your real estate agent knowing your approximate price range and financing options.
Once you find the right home, your real estate agent will help prepare and negotiate your offer.
After your offer is accepted, we finalize the loan structure and begin processing your mortgage.
The lender reviews the property and your financial documentation and completes the underwriting process.
Once all requirements have been completed, you sign your closing documents and become a homeowner.
Throughout the process, we remain available to explain what is happening and what comes next.
As a mortgage broker, Capital Funding Mortgage is able to work with multiple wholesale mortgage lenders rather than being limited to the loan products and pricing offered by a single bank.
That gives us the ability to compare mortgage options and determine which lender and program may be appropriate for your particular transaction.
For a first-time buyer, that flexibility can be especially valuable because two borrowers purchasing similarly priced homes can have very different financing needs.
I started Capital Funding Mortgage more than 25 years ago.
During that time, I have worked with borrowers through changing housing markets, rising and falling interest rates, different lending guidelines, and many different financial circumstances.
For a first-time buyer, one of the most valuable things an experienced mortgage professional can provide is perspective.
If there is an issue, I want to identify it early.
If there are several financing options, I want you to understand the differences.
And if I believe one approach makes more financial sense than another, I will explain why.
You do not need to have everything figured out before contacting us.
In fact, speaking with us before you begin seriously shopping for a home can help you avoid surprises later.
Whether you are ready to purchase immediately or simply want to understand what you would need to do to become ready, we would be happy to speak with you.
Contact John Madden and Capital Funding Mortgage today to discuss buying your first home in Newtown, Bucks County, or anywhere else we serve in Pennsylvania.
There is no obligation to purchase a home simply because you have a mortgage consultation. The goal is to give you the information you need to make an informed decision.
Capital Funding Mortgage
Helping home buyers understand their mortgage options for more than 25 years.
