It is time for you to buy a new home, in fact you have been thinking about it for a while now. The time is right. You have looked at your goals and worked through the amount of money you have. You can afford a mortgage and there are many different types available. There are several kinds of new home buyer loans available and all you have to do is pick one.
One type of mortgage that is available to you is a fixed rate mortgage. This one is popular because the borrower tends to be protected from hikes in the amount of money they pay from one month to the next. It is a straight forward mortgage. The advantages of this kind of home loan include its stability. You know what you need to pay every month for both the principle as well as the interest. The amount remains the same for the duration of the loan repayment. In addition, whether the interest goes up or not, the payments do not change.
This is something to think about even as you make your decision. This kind of loan makes sense when you are making plans to live in the same house for many years or when you want to work with a strict budget. When you know what the amount you are required to pay per month is, you can make plans with ease.
If you have had an economic event that has adversely affected your finances you would need to consider a back to work loan as your first one. This loan allows you to make a new start if you have had some financial challenges in the past. It is among the new home buyer loans but can also be taken out by those who have owned a home previously and lost it. If you have suffered foreclosure, forbearance, bankruptcy, a short sale or anything of that sort you can get a loan that will allow you to own a home again.
This loan is a great idea because the down payment can be as low as 3.5% and the interest rates are not any higher than those of a regular loan. One of the things you will need to prove before you can get such a loan is that you suffered an economic event and you were a responsible debtor. With such information you are simply reinstated back to the place that you were before.
You will, however, need to prove that you have recovered from the economic event that affected you. Make sure you have a source of income and your credit history is clean for a period of 12 months.
One type of mortgage that is available to you is a fixed rate mortgage. This one is popular because the borrower tends to be protected from hikes in the amount of money they pay from one month to the next. It is a straight forward mortgage. The advantages of this kind of home loan include its stability. You know what you need to pay every month for both the principle as well as the interest. The amount remains the same for the duration of the loan repayment. In addition, whether the interest goes up or not, the payments do not change.
This is something to think about even as you make your decision. This kind of loan makes sense when you are making plans to live in the same house for many years or when you want to work with a strict budget. When you know what the amount you are required to pay per month is, you can make plans with ease.
If you have had an economic event that has adversely affected your finances you would need to consider a back to work loan as your first one. This loan allows you to make a new start if you have had some financial challenges in the past. It is among the new home buyer loans but can also be taken out by those who have owned a home previously and lost it. If you have suffered foreclosure, forbearance, bankruptcy, a short sale or anything of that sort you can get a loan that will allow you to own a home again.
This loan is a great idea because the down payment can be as low as 3.5% and the interest rates are not any higher than those of a regular loan. One of the things you will need to prove before you can get such a loan is that you suffered an economic event and you were a responsible debtor. With such information you are simply reinstated back to the place that you were before.
You will, however, need to prove that you have recovered from the economic event that affected you. Make sure you have a source of income and your credit history is clean for a period of 12 months.
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