There are a few things in life that are as exciting as owning your first home. The fact that you have an address of your own and can personalize the décor to your own taste makes it one of the best experiences in anyone’s life. First time buyer home loans is very popular in the United States and a number of lenders offer these to people across different income groups. If you are planning to apply for such loans you need to seek help from experts such as Clear Lending (http://www.clearlending.com/en/). Here are four important things that you need to know.
- Type of Program – One of the most important things that you must decide on is the type of program you want to opt for. FHA home loan is surely the most popular program as it offers you loan at attractive rates. But apart from FHA there are a number of other options that you can try. If you or one of your family members has served in the military or is serving now you can choose the VA home loan with 100% financing.If you live in a designated rural area you can try the USDA loan program.
- Mortgage Rates – Let’s put it straight, when you are out comparing different loan programs you always want the best mortgage rates in Houston. Even a fraction of difference in the mortgage rates can lessen your burden by thousands of dollars over a period of 15 or 30 years. So you should start by comparing the mortgage rates that are being offered by different lenders. You can ask for a quote from them or talk to a mortgage expert to find out more.
- Affordability – Many loan seekers often confuse this with eligibility. While eligibility is solely decided based on your income, credit history and other technical parameters, affordability of the mortgage is something that is relative to every individual and family. How much loan can you afford? You need to look into your expanses, lifestyle and future plans before you apply for a loan as steep monthly payments often lead to defaults.
- Credit History–Most lenders take note of your credit history and this is an important eligibility criteria. The Credit Score requirements for different loan programs vary and you must do some research on the Credit Sore requirements before applying for the loans. If you have a perfect credit score you would have to get more financing and would need to make lesser down payment while a moderate score would require you to make larger down payment,at the same time there may also be a cap on the amount that is sanctioned as the lenders would want to minimize their risks.
These things kept in mind will lead you to the right home loan program that would serve your needs. However to get loans at the best rates and choose a program that is affordable and meets your exact needs you must take help from mortgage experts. Clear Lending as the leading lending services company helps customers with every aspect in different kinds of home loan program including home loans for bad credit in Houston.
