First Time Home Buyer
All about First Time Home Buyer loans
First time home buyer loans help to deduct the property taxes you pay as a homeowner and the value of your home may go up over the years. A home is an investment. When you rent, your money is gone forever. But, when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes. This will save you a lot each year.
Start by getting familiar with the home buying process and pick a good real estate broker. It is better if you consider getting pre-qualified, so that when you find a house you like and the one which fits in your price range then, you can buy it without any delay.
A good real estate professional can guide you through the entire process. He can help you figure the price range you can afford. The broker can save you a lot of time and money, with immediate access to homes as and when they're put on the market.
By using simple mortgage calculators, you can calculate how much loan you could pay. A broker will help you evaluate your loan potential. He knows what kinds of mortgages the lenders are offering so, can help you choose a lender with a program that is suitable for you.
You can finance a home with a loan from a bank, a credit union, a private mortgage company or various state government lenders.
You can save money if you take some time to look around for the best prices. You can look in your local newspaper's real estate section - most papers list interest rates being offered by local lenders. Different lenders offer different interest rates and loan fees. A lower interest rate can make a big difference. The more money you invest into your down payment, the lower your mortgage payments will be.
When you apply for a loan, your lender will give you an estimate of the closing costs, so don’t be caught by surprise.
Most loans have 4 parts:Basically, most of the loans are for 30 years, although 15 year loans are also available. During the life of the loan, you'll pay far more on interest than you will pay in principal. In the starting years you'll be paying towards the interest in your monthly payments and in the final years largely towards the principal.
- Principal : the repayment of the amount you actually borrowed
- Interest : a payment to the lender for the money you've borrowed
- Homeowners insurance : a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards
- Property taxes : the annual city/country taxes assessed on your property, divided by the number of mortgage payments you make in a year
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