First Time Home Buyers Loan

If you are applying for a home loan for the first time, this will be quite a new experience and a bit intimidation up to some extent. In fact the process of home mortgage may still be confusing for the persons who have been through it before, not to talk of who are doing it first time. However if you follow the tips given here then you may be saved from a lot of hassle.


The process for home mortgage many be complicated for a first time buyer, but fortunately there are people who know it very well and they are available and willing to guide you. The most relevant people are the lenders themselves. If you spend time with them and ask questions intelligently you will be able to understand the process. Your real estate agent can also guide you through the process, maybe better than the lender because he will have a neutral opinion. Similarly you can ask from your relatives and friends who have been through this. Thus with a little patience you can understand the process even before getting into it.

Before you start negotiating the loans you must understand what the various terms mean. For example what is the difference between an adjustable and a fixed rate mortgage, what is a 15-year amortization as opposed to a 30-year amortization, how does a bank loan officer differ from a mortgage broker. Make sure that you select a loan with the lowest fees and interests.

There are several government schemes around at federal, state and local levels to provide financial assistance for the first time home buyers. You can search on the internet for these, or ask your real estate agent or the lender themselves, they will be too eager to guide you to one.

These schemes usually help you with your down payment and may include grants, charities or assistance programs. You can also look for schemes approved by HUD.


One you have a rough idea of how much you can afford on your house with your loan you can start making your selection. First of all make a list of requirement that you need and want in your house, e.g. if you are addicted to gardening then a house without garden will be of no use to you. After making a carefully selected shortlist, then visit those places and make your final choice.

After making your final choice for your home, carefully negotiate the loan terms. Now is the time to decide how much down payment you are going to pay, whether you want a fixed or an adjustable rate and if you want a 30-year or a 15-year amortization. Remember to negotiate the terms, because by negotiation many of the fees may be waived off if you are a first time buyer/borrower. The process of buying a home first time and borrowing for it may be tedious, but if worked through carefully will be rewarding in the end.

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