Home Loans Articles

Facts about First Time Home Buyer Loans

Being a first time home buyer is a big deal when it comes to getting a loan. Your credit history is scrutinized. The market value of the home is considered. Your income and employment history become an issue. After all, owning a home is a huge expense. It is important to ensure that you can actually afford to buy the home and keep up with the monthly payments.

What are First Time Home Buyer Loans?

First time home buyer loans are those taken out by individuals who have never owned a home before this one. The home is used as collateral for the home loan, which makes this a secured type of loan. In essence, if the home buyer should default on the loan and go into foreclosure, the lender can repossess the home and recoup his financial investment.

First time home buyer loans are offered to individuals with all types of credit- good, poor, and nonexistent. Being a first time home buyer can be a good thing since it also means that there hasn't been time to experience a foreclosure placing the credit rating in the dumpster. After all, the better an individual's credit rating is, the lower the interest rate will be for his home loan. Plus, the more quickly the loan application will be approved.

What Type of First Time Home Buyer Loans Are There?

The first time home buyer has the same access to home loans as the second or third time buyer. Home loans come in an assortment of fixed interest rate, adjustable interest rate, interest only, and balloon home loans. It is up to the home buyer as to which type of loan he wishes to apply for in order to finance the purchase of his home.

Completing the Application for a First Time Home Buyer Loans

If you apply online, the options are compared for you and the best ones are returned as results to your application. It is necessary to input a few important details, such as the amount that you want to borrow, your credit rating, and the state that you live in. Of course, other information might be needed as well. However, you don't need to stress over the details since estimated values are permitted at this point.

Completing an online application is as easy as filling out the information to obtain a library card. It is quick, easy, and secure. Plus, best of all, it is free. No fuss and no muss. Who wouldn't want to take advantage of this process?