First Buyer’s Home loan guide book

Here is a short first buyer’s home loan guide book which will give you all the information about getting a home loan. This will help you determine what kind of loan works best for you and what you need to do to get the best deal for yourself. The most important thing is that you find a home loan that suits your needs.

The initial loan taken to buy a home or any real estate is termed as “First Mortgage Loan”. The mortgage loan is safe and secure by the lender. This offers you the flexibility of all loans which can be issued at a fixed or floating rate of interest and they sometimes offer a first-time homebuyer’s discount also.

The most important is your income proof which will approve how much loan amount you will be liable to get and what rate of interest. Your calculated credit score is used by the lenders to determine your creditworthiness. You should well understand your credit before applying for a loan. Depending on your income proof, your credit data, and any other related factors, you will be liable to get a home loan suitable to you. It is important that you know how much you want to borrow and how much you can borrow.

Do remember to check the loan agreement carefully before signing any contract with the loan department. Be careful for any hidden costs and confirm about any agreement clause that you do not understand. Loan assessment and inspection fees are usually always required to get a first mortgage loan.

You should also compare loan rate of interest with other lenders too as some may offer less and some may offer higher rate of interest. Make sure that you have all required information before you apply for a home loan.

• Social security number (including any co-applicants)
• Identity Proof
• Property Address
• Present Residence Address
• Phone Number
• Estimated Value of Property
• Income Proof

Now is the time to apply for the home loan. There are various ways that you can apply for a loan - by applying at a bank directly, through a loan agent or broker, and you can also apply online.

Apply at a bank - Applying at a bank directly is one of the best options as it is face to face communication and you can clear all your doubts and information about the loan. It may suit people who are more comfortable in face to face dealings.

Apply through a loan agent or broker - This is one of the easiest options of taking a home loan as you are free of all the hassles in between, so as to get all the information about different lenders and their comparison. But there may be a certain amount of commission of the broker’s you may have to pay.

Applying online - Applying online is in fact the best way to apply for a home loan. As you have your application online, different lenders will view the same and contact you directly with their proposals, and you can decide the best deal yourself.