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First Time Home Buyers Knowledge Base

Home Buyers Knowledge Base

Learn everything you need to know about home mortgages. Loan programs, requirements, benefits, loan rates, credit score, loan limits, home insurance closing costs and much more.

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Are You a First Time Home Buyer?

If you are a first time home buyer, you should realize that there are many different types of loans available to purchase your new home. You can go with a fixed-rate mortgage or an adjustable rate mortgage. These two types of mortgages have their own advantages and disadvantages, but a simple thumb rule is that if bulls are on the run [means market is on the high] go for a adjustable rate otherwise if it is a bear market always opt for fixed rate.

The first thing you should try is searching an USDA eligible home, that way you can qualify for a zero down home loans as mortgages qualify for a government insured home loan program. With these kind of loans you usually get zero down payment or pretty low down payment options and average credit score is also just fine for all of government loans.

Secondly you should find out, how big a house you can afford. You already know what amount you can set aside for mortgage payments, what you need to is to reverse calculate it with a mortgage calculator which will give you a fair idea as to what price property will fit in your budget.

Another thing you will want to do is to compare different loan types so that you can find the one that is best for you. This will help you in your search for a good interest rate, terms and conditions of the loan, and the level of coverage that the loan will offer. The more you understand about the loan before applying the better your chances are of getting the loan that you need. When you are able to compare loans, you will have a better chance of getting the loan that is the best match for your needs.

As an example for a first time home buyers in ohio is to gain as much information as you can about different loan programs, rates, insurance, eligibility criteria, requirements and above all the process and then talk to an approved lender in your local area.