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First time house buyer loans

Getting a first time house buyer loan

With interest rates at the lowest level for generations, it is likely that now is the best time to get a first time house buyer loan.

First time buyers are also in a strong position when it comes to negotiaiting the price of that first house.


 

 

 

 

 

 

The first time we buy a home, there are mixed feelings. We are elated because we have acquired something we can call our own, and we are worried about the loan that we have had to take. There are very few of us who are fortunate enough to be able to pay for a home outright, most of us need to take a loan in order to space out the payments.

If you are looking for a home loan for the first time, then there are a few factors which will apply specifically to you. You probably do not have enough money to make a down payment, hence most of the cost of the home will have to be covered in the loan itself.

If you can make a deposit, then you can choose an interest-only mortgage, and pay the capital sum at the end of the term. The monthly costs will be lower, but there is a large sum which needs to paid at the end of the term. You can opt for a fixed rate mortgage, where the monthly payments will go towards a steady repayment of the loan. The home loan time period generally extends up to 25 years or more. The time period may seem a lot, but you must remember that very few people remain with the same mortgage for 25 years and a new mortgage is taken every 2-5 years. Try to get a 100% mortgage, many lenders offer these specially to first time home buyers.

Loans for first time house buyers may seem daunting, but as your paying capacity increases and you are able to afford a better home, the loan structure will change. Initially it is important to choose a loan which you will be able to pay easily, since your credit history will be based upon how good you are with your home loan repayments.

 

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