| There are several factors involved in the purchase of | | | | through loans taken by the first time buyers. Most of |
| a new house, such as size of the family, the location, | | | | the times, the lenders of mortgages consider the credit |
| the neighborhood, and most importantly, finance. The | | | | score of the applicants. The first time buyers need to |
| different kinds of finance for a fist time homebuyer | | | | have a decent credit score to contract a good offer |
| include direct investment, bank loans, and mortgages. | | | | on the mortgage applied. If the credit score is bad, the |
| Due to the flexibility offered, mortgages are becoming | | | | mortgage cannot be granted and this kind of policy |
| a popular means of financing a home. | | | | remains same throughout several lending institutions of |
| In layman's terms, a mortgage is a loan against | | | | the country. Various rates are offered to first time |
| property, or against the new property the applicant is | | | | homebuyers, depending upon their entire financial |
| about to buy. There are different types of mortgages | | | | structure. Mortgaging institutions, usually decide the rate |
| available, to individuals, according to their needs. The | | | | of interest to be less than 28 percent of the |
| most common types of mortgages are conventional | | | | borrower's gross monthly salary, in case the borrower |
| or high-ratio, fixed or variable, short term or long term, | | | | has no outstanding debts. In case where the buyers |
| and open or closed mortgages. For the first time | | | | have a history of outstanding debts, the rate goes up |
| homebuyers, there are a variety of mortgages to | | | | to almost 36 percent of the borrowers' gross monthly |
| select from, depending upon their financial situations. | | | | income. |
| Each lending institution has its own set of regulations | | | | Because there are various types of mortgages to |
| and policies that need to be adhered to. | | | | choose from, the mortgaging companies are |
| Amongst the basic requirements in the mortgage | | | | constantly competing to keep the rates flexible to |
| program is the down payment. More the amount of | | | | attract maximum buyers. |
| the down payment, lesser will be the burden to repay | | | | |