| It can be both exciting and perplexing when it comes | | | | What are the requirements? |
| to buying your first home. Get yourself to know the | | | | 1. Good credit report: |
| basics of home mortgage loans and be on your way | | | | Your credit report will let lenders determine whether or |
| to finding the perfect place. | | | | not they will approve your application and whether or |
| What is a mortgage? | | | | not to increase interests rates for your loan. Lenders |
| A mortgage is a loan you pull out to pay off your | | | | especially want to make sure that a first time home |
| home. If you are a first time home mortgage loan | | | | mortgage loan borrower has the ability and willingness |
| borrower, you may be asked to deposit a down | | | | to make his or her payments. |
| payment and pay for the rest (i.e. monthly) through a | | | | 2. Insurance: |
| mortgage loan. Establishments that can offer | | | | Insurance can be used to pay off your mortgage if |
| mortgages are mortgage specialists, building societies | | | | you have just been in an accident, lost your job or |
| and banks. | | | | become sick. You might be required to use life |
| What are the types of mortgage? | | | | insurance to pay off your mortgage should death |
| - Repayment mortgage - monthly payments are made | | | | occur. What are some tips I can use before |
| within an agreed term until loan and interest are paid | | | | purchasing property? |
| off. | | | | - Improve your credit report - Avoid applying for more |
| - Interest-only mortgage - monthly payments are made | | | | credit and pay on time. - Review and correct credit |
| for a period of time as agreed in the contract, except | | | | information - Contact the credit bureau to correct |
| payments cover only the loan's interest within the initial | | | | inaccuracies - Get the best program - Choose a plan |
| term. Afterwards, you are asked to make interest | | | | that is most suitable for your situation. - Research - Jot |
| payments in full every month. | | | | down your price range and find out how much you |
| - Fixed-rate mortgage - requires you to pay for a | | | | can borrow. - Do it online - Using the Internet could |
| fixed interest rate over the whole term. Interest rates | | | | save you more time and money. Lenders now offer |
| do not change and therefore offers a feeling of | | | | mortgage calculators online that you can use to predict |
| certainty for most borrowers. | | | | which mortgage program is most suitable for you. - |
| - Adjustable Rate Mortgage - has rates that adjust | | | | Choose the best mortgage specialist - Determine if the |
| after an initial term containing a fixed rate. Rates could | | | | specialist works in a company that is likely to stay in |
| adjust depending on the rise and fall of other economic | | | | business whenever rates fluctuate. - Ask for advice - |
| rates. This could sound daunting for first time home | | | | Look for recommendations so you are familiar with |
| mortgage loan borrowers, but those who want a | | | | what kind of mortgage plan you are getting into. |
| lower initial rate can benefit from this type of | | | | This is only a guide and should not be used in legal |
| mortgage. | | | | matters. |