4quotesfast.com - First Time Buyer Home Loan

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If you've never owned a home, applying for your first mortgage can be confusing. Let 4QuotesFast.com help you find a trusted lender to guide you through the process and save you thousands on your First Home Loan.

• Mortgage Brokers bring lenders and borrowers together, while Bank Loan Officers sell mortgages originated by their employer.
• Your Debt to Income Ratio shows the percent of your income that can go towards your home loan. Lenders look at this when reviewing your loan application.
• Consider Bi-Weekly Payment Plans. These programs, where you make mortgage payments twice a month instead of once, can help you pay off your loan more quickly and save you money in interest. Keep in mind that your lender may charge a fee for this plan.
• Points can lower your interest rate, but factor in how long you plan on living in your house. If the interest saved over that period of time doesn't break even with the cost of the points, this isn't a good option for you.
• Private Mortgage Insurance (PMI) is required for homebuyers who have a down payment of less than 20% of the cost of the home. This means that you can buy a home with as little as 3-5% down on your house.
• In half the states in the US, a Deed of Trust is used instead of mortgages. The main difference is involved with the foreclosure process.

Choosing The Right Mortgage

1)  Fixed Rate Mortgage: Constant interest rate and monthly payment.
          Good For: Home Buyers who plan to live in the same home for at least 7years
          Benefit: Stability
          Drawback: Higher interest rates and monthly payments
2)  Adjustable-Rate Loans / Mortgages (ARM): Constant interest and montly payment for      1-10 years, and the interest rate adjusts every year thereafter.
          Good For: Home Buyers who plan to move or refinance 2 years after the fixed rate              adjusts
          Benefit: Interest rates start lower than Fixed Rate Mortgages
          Drawback: Interest rates will adjust based on the market after the initial fixed rate              period. This new rate could be up to 6% higher.
3 )  Balloon Mortgages: Constant interest for 5 or 7 years, loan is due in full after.
          Good For: Home Buyers who plan to move or refinance during the initial period.
          Benefit: Interest rates start lower than Fixed Rate Mortgages
          Drawback: Loan is due in full after the initial period or the owner must refinance
4 )  Jumbo Loans: Loan amount is larger than the limits of Fannie Mae and Freddie Mac.
          Good For: Those who want a loan for more than $417,000
          Benefit: Larger property investment
          Drawback: Interest rates tend to be higher
5 )  FHA and VA Loans: The FHA and VA provide these loans to specific homebuyers
          Good For: Home Buyers looking to save money on the down payment, veterans
          Benefit: Low or no down payment
          Drawback: Both loans have restrictions and VA loans are only for US veterans

     **To better understand the home loan process, please go to the purchases page.**