First time home loan
Buying a house is one of the biggest decisions and investment that a person makes. For people who are buying a house for the first time it is a very exciting process. However most of the buyers are not financially well off to buy a house on their own. For such buyers there are first time home loans. That can help boosting the purchasing power of the buyer. There are a number of steps that can be taking to make the buying process simpler and easier.
Shop for the loan:
When you decide to take a first time home loan then you shouldn't go in for the first offer that you come across. Take your time to go through the different offers that different lenders offer and then decide on which is the best offer for you. When you contact a lender you should ask for a Good Faith Estimate that gives you the true cots of the loan.
Down payment:
When you take a home loan then you are required to give a down payment amount. This amount varies from 5-20% of the value of the loan. You should try and give as much down payment as you can. Also keep in mind that the more the down payment you give the lower would be the interest charged on the loan.
Check the flexibility:
When taking the first time home loan you should make sure that you take a loan that gives you the flexibility with the payment. Make sure that you would be able to keep up with the monthly payments towards the loan.
Interest rate:
When you take a first time home loan or for that matter any mortgage you would be given a choice between fixed rate home loan and adjustable rate mortgage (ARM). Both of these have their own advantages. However if you are a person who follows a budgeted expenditure then a fixed rate mortgage is a better choice. With an ARM however, you can qualify for lower interest rates when the market rates follow but these are uncertain. At present the current interest rates for national average for a 30 Yr Fixed is 6.22% 0.05%; 15 Yr Fixed is 5.90% 0.03% ;1 Yr ARM is 5.47% 0.03%. The Fed Prime is 8.25% 0.00% and the 30 Yr Tres is 4.89% -0.04%
Interest-Only loans:
Usually the first time homebuyers prefer to go in for interest only home loans. This is because for the first few years you are required to just pay the interest towards the loan. This keeps your monthly payments low. But once this period gets over then your monthly payments change and you are supposed to pay both principal as well as interest.
Refinance first home mortgage:
It is not necessary that you would get a good rate when you apply for a first time home loan. However, once that some time has passed and you have built some equity in the house then you can opt for a refinance. This replaces your first mortgage and gives you an option with low interest rate.
Applying for first time home loan:
When applying for first time home loan you should first assess your annual income. Also look into factors as to the security of your job. You should also consider checking your credit score before you apply for the loan. There are times that people do not realize that they have bad credit and apply for loans. This can at times, result in denial of the loan. It is hence advised that you check your credit score.First time home loans are long term loans that are given for durations of 15-30 years. You should make sure that you would be able to afford the payments towards the loan. This should be your first concern because your home loan is secured against your house and if you fail to make payments towards the loan then the lender can take possession of your house.
When you fill out the first home loan application you should make sure that you fill in all the required details. You are required to provide information about the income, duration of employment, assets and personal information like social security number etc. You can opt to apply for the loan directly with the lender or through a broker. The lenders would directly lend you the money. However when you apply through brokers they would give you access to different lenders who would be ready to finance your home loan. The brokers act like middlemen who help you in getting the home loan. Some of the brokers and lenders for first home loans are mentioned below.
Lenders for first home loan First Empire Mortgage:
They are a mortgage corporation that provides home mortgage loans. They have a well-experienced staff that understands the needs of the individual and deal with them patiently guiding them throughout the loan process.
Trust First Mortgage:
They believe that every client has his or her own needs and treat every application individually. They provide loan options, mortgage information and help to people who are first time homebuyers. They are located in 18765 SW Boones Ferry Rd., Suite #150 Tualatin; Oregon 97062. You can call them at 503.744.0346 or fax them at 503.744.0347
Peoples First:
They are located in Florida and have been operating since 1983. They provide first home mortgage loans. Their employees help you in filling the loan application and make your aware of the different loan types that they have.
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