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First
Time Home Loans
(and
giving birth)
Fact: A family or individual seeking first-time home loans (FHA)
can be compared to players initiated into the big leagues.
It is right to assume such because beneficiaries of first-time
home loans are mostly newlywed couples or basically people
starting to put their lives in order. This move on the part
of couples is actually a tussle between owning a home or
renting, because their incomes may not be sufficient to
buy and maintain a home while renting on the other hand
provides adequate leeway to leave no other obligation.
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People needing a new house for their family should shop around
for the type of first-time home loans that are deemed suitable
to their needs and budget. Buying a house is confusing and exhilarating
at times especially if you are a first time buyer. So to avoid
mistakes, first time buyers are advised to look for someone that
could guide them through the maze of the home buying process;
inform them to check credit scores to know the kind of mortgage
available for them; and how to make a proper offer that will appear
enticing to the seller.
The next big question for shoppers of first-time home loans is
how much can they afford? The type of house you intend to buy
depends on so many factors like how much money to set up as down
payment, (although there are no down payment schemes) how much
can you set aside for the monthly amortization and what about
funds to pay for extra charges. Moreover, the buyer still needs
to undergo a process of pre-qualification and pre-approval, to
determine the first-time home loan amount that can be made available
at his disposal.
After securing the necessary documents, then it is time to look
for the home of your dreams. Begin by driving around and observing
different neighborhoods and comparing house models. Check the
classified ads, surf the Internet and hire a real estate agent
because these are the professionals that can provide expert advise
in the selection process.
It's not enough to choose the best house possible. Other factors
need to be considered before taking the final leap such as the
presence of a school, the safety and crime level around the vicinity,
traffic congestion on your way to work and back, as well as the
property values in the neighborhood.
Once you've zeroed-in on a property of your preference it's time
to consider what type of first-time home loans you may require.
Traditional thinking suggests that you take a conventional 30-year
fixed rate mortgage because the monthly payments are standard
up to the entire term of the loan. Besides, this scheme will protect
you from inflation.
But, if you have plans to move out in 3 to 5 years time, then
adjustable rate mortgages
are ideal under said circumstances because most ARM schemes provide
low-interest rates during the first 3 to 5 years of the loan.
The last thing that you'll need is to secure the application
of mortgage since said document is usually required to close the
mortgage deal on your dream home. Bring along with you a duly
signed purchase agreement, copies of your W-2 forms and other
documents that show proof of income (original pay stubs, investment
statements, verification of employment, 2 succeeding years of
income tax returns), apart from proof of assets (bank statement,
etc.), a copy of earnest money deposit and homeowner's insurance.
That's about it. Now, move on and move in.
Fiction: Some say that getting a first time home loan
is like giving birth. You don't know what to expect and
there is a lot of anxiety involved. And, then the loan goes
through and they start pulling money out of your ying-yang
which some say is as painful as giving birth. Either this
or overcoming constipation and passing a really big turd.
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