| First Home Mortgage |
Before you apply for your
first home mortgage, you need to educate yourself and research your options. Find out about tax credits and other incentives being offered by the government to encourage people to buy their first homes.
Home prices are at very attractive levels and
mortgage rates
are affordable. You can buy a home you may not have been able to afford a year ago.
However, lending norms have become very strict and you will need excellent credit to be approved for a mortgage. Mortgage loan applicants have to provide documents that prove their income and employment history, and their applications are checked very carefully by lenders.
As a first time home mortgage applicant, you can consider taking a course on how to buy a home. Use an online mortgage calculator to find out how much you can afford to borrow. Talk to a few real estate professionals and contact a housing counselor who is approved by the HUD to find out about your options.
If you make a bigger down payment, you will have to make lower monthly payments. In case you feel that you will not be able to afford the down payment or monthly payments on the house you are interested in, you may have to postpone your purchase.
You can consider buying a HUD home, which is a 1 to 4 unit residential property that has been acquired by the HUD due to a foreclosure action on a FHA -insured mortgage.
If someone with a HUD-insured mortgage is unable to keep up with the payments, and the mortgage lender forecloses on the property, the HUD pays the lender and takes possession of the home. The home is then sold to someone else.
Some
mortgage loans require a down payment of 10 to 20 percent of the purchase price, and many first-time home buyers cannot afford this. FHA Loans, which require a down payment as low as 3.5 percent of the purchase price, are much more affordable.
FHA loans have easy credit norms and allow borrowers to include most of the closing costs and fees in the loan. These loans are not given by the FHA (Federal Housing Administration). The FHA insures the loan so lenders can offer better deals.
You can also find out about first time home buyer mortgage programs sponsored by your state or local government, or other organizations, which will help you to get easier terms.
You may be able to save thousands of dollars if you shop around, compare offers and negotiate with lenders. Obtain quotes in writing from a few mortgage brokers and mortgage lenders. Try to make them compete with each other for your business. Check the background of the lenders and read the fine print carefully before you sign up.
We can help you to get free, no-obligations mortgage quotes from pre-screened lenders in your area with a few clicks. There are no costs or commitments involved and we will not disclose your contact details to anyone without your permission.
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