Simon Berby asked:




With a First Time Home Buyer Loan, people on a middle or low income find it is possible to buy their own home. The low economy is a major factor in people not thinking about buying a new home at present, and yet they are not considering that property prices are also very low right now.

People who are experiencing economic difficulty and need to buy a home are the ones who benefit the most from First Time Home Buyer Loans. They are able to save wasted money going into rent; instead it can go towards paying off their loan and eventually fully owning their home. There are different options of loans available, whether people are looking to buy their first home or whether they have owned one before.

There is a first time home buyers loan which is known as a FHA loan. For people who are buying a home for the first time this is the best loan. The down payment is only 3.5%. And a very big plus is that a person can have a credit statement which shows a ratio of very high debt against their income and it will not affect their eligibility. In addition to the low down payment the monthly payments for insurance on these loans are also lower since the FHA will charge a buyer a percentage on a monthly basis. This is also what is called MIP funding fee.

To find out about these loans, which actually are a government loan program, you will need to visit a mortgage company or bank. The best idea is to find a mortgage company that specializes in FHA loans and sign up with them. They will have a much larger portfolio and should have better rates than a general mortgage company.

Some advice if you are looking to sign up for one of these loans, is to do your research well and to work out your finances to make sure you can easily afford not only the down payment but also the ongoing payments of the loan. You may be enticed by the low down payment but it is wise to also factor in the possibility of a change in your economic circumstances.

If you have some money saved up and are wanting to buy your first home, the first time home buyer loans are the best way to have a good investment. However you don’t want to end up having to forfeit your home because you over stretched your finances, as tragically we have seen happen for many people over this last couple of years.

The lender you consult with will be able to advise you on which type of loan best suits you. First time home buyers loans are great in every way and are one of the cheapest home loans available.

Philip

Peyton asked:


Please Please go easy on me, I am hoping to be a first time house owner.

Two Questions:
1) If a house you are buying is appraised for $30,000 and you are buying the house for $20,000. Can you get a loan (mortgage) for $30,000 (so I can take the extra $10,000 to fix up the place)?

2) What would be one advice would you give a 1st time home buyer, that YOU wished you knew when buying a house.

Thank you!

Sue

John Preest asked:




There are many reasons why one may need professional mortgage advice. For example, you may be a first time home buyer, or you are not familiar with certain mortgage rules and regulations. Speaking with a professional mortgage advisor will help you avoid costly mistakes.

A mortgage is a huge and long term financial commitment. Obviously, being behind in mortgage payments is not exactly fun. In serious cases, the lenders will execute their legal rights and foreclose the property, leaving the owners homeless. Usually, such problems can be avoided with proper financial planning. That is the main reason for consulting a professional mortgage advisor.

Another good reason for engaging a mortgage advisor is because there are too many different types of mortgage loans in the market. This situation arises because different people have different needs. For example, there are first time buyer loans, self employed loans, variable rate loans, bad credit loans and more. A professional advisor will be able to make the proper recommendations to narrow down the scope for you. This is to ensure that you don’t end up with the wrong mortgage type.

In addition, professional advisors will also be on hand to offer you information that would have been difficult to obtain. For instance, you can ask about the maximum loan amount that you qualify for, the deposit required (if any), or whether there are other costs such as stamp duty. Such information will help you come up with better financial plans. Otherwise, you may find yourself coming up short of funds and having your mortgage applications rejected.

Also, since professional mortgage advisors are actively seeking out the right mortgage loans to fill the needs of their customers, they are more likely to be aware of the best deals in town. As they are in a better position to negotiate for competitive rates, you may get to enjoy lower interest rates.

Some buyers tried to apply for mortgage loans on their loan but their applications were rejected for some reason. The most likely reason for rejection is probably bad credit. Therefore, these loans are also commonly known as bad credit loans.

Professional mortgage advisors may be able to help these buyers get their loans approved. This is because there are lenders who specialize in handling bad credit mortgages, and mortgage advisors already have an existing relationship with these lenders. So it is easier for them to get a bad credit mortgage approved.

As the economy rises and falls, some homeowners find that they may not be able to cope. In such times, bad credit mortgage services become extremely useful.

Besides mortgage services, a homeowner may also require additional services such as debt consolidation services. This is another reason why professional mortgage advisors should be hired. They are able to provide comprehensive financial services to alleviate financial burdens.

Finally, when engaging the services of a mortgage advisor, make sure that the advisor is not tied to any lender. If so, the lenders may be paying them commissions to help promote their loans. As a result, they may offer advice that is biased.

Daniel

diamondcattoy asked:


I am interested in getting pre-approved for an FHA loan and have been talking to my bank and I want to know what my options are to keep my costs down and not get taken advantage of as a first-time home buyer. If you have resently had some experience with this in the Riverside County area any advise would be appreciated.

Lori