First time home loans are not complicated, and as long as you are organized, it is a simple process to walk through. Finding a good lender is not as confusing as it seems, and the process is straightforward and just requires a little planning.
The first thing you will do is pay an application fee and then start filling out paperwork. You will need documentation from different sources, but think money and records, and start organizing now. Lenders will need copies of bank records, tax returns and payroll stubs for the last two years. This is the worst part of getting a mortgage, and the more organized you are the faster it will go.
The mortgage lender will be looking for first time home loans that will give you a monthly payment of around thirty percent of your income.
The next thing is the infamous credit check and peek into your financial history. They will definitely want to know that you can and have been paying your bills on time and that you are not overextended with your available credit. The better your financial portfolio looks, the better the interest rate on the loan. For those with less than perfect credit, loans are available, but interest rates will be higher and terms may be less friendly.
The next thing will be to see what kind of first time home loans your are applying for. There are two common types of mortgages. The first is the traditional fixed rate mortgage. This loan has the same interest rate through its entire term, no matter what the market rate is. This keeps monthly payments low and consistent.
The adjustable rate mortgage, the interest rate is low for the first few years, however it will go up to reflect market conditions after a fixed point in time. These are good for short term loans or situations where buyers are looking to quickly build equity in their home. Since they have low interest rates in the beginning, most of the monthly payment goes into the principal.
No matter what first time home loans are being sought, the process is pretty much the same in applying for them. Assembled the required paperwork and consult a mortgage professional. The keys to your first home are only a few weeks away.
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Tags: first time buyer home loans, first time home loans, fixed home equity loan, fixed home equity loan rates, fixed home equity loans, fixed rate home equity loan, fixed rate home equity loans, home equity loan fixed interest, Home Loans for First time Buyers, Loans
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Sulaiman, Rheza "The Basics Of First Time Home Loans." The Basics Of First Time Home Loans. 22 Jun. 2010. uberarticles.com. 8 May 2015 <http://uberarticles.com/finance/loans/the-basics-of-first-time-home-loans/>.
APA Style Citation:
Sulaiman, R (2010, June 22). The Basics Of First Time Home Loans. Retrieved May 8, 2015, from http://uberarticles.com/finance/loans/the-basics-of-first-time-home-loans/
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