| Finding home loans can be a daunting task, whether | | | | intervals. Your payments will usually be lower with an |
| you’re a first time home buyer or an existing | | | | ARM (at least at the start of the loan) but over the life |
| homeowner. The good news is that there are more | | | | of the loan you run the risk of your payments going up |
| options than ever to help you find the loan that’s | | | | if interest rates rise. |
| right for you. | | | | A newer type of loan is the interest-only mortgage. It |
| Check Your Credit Report | | | | features some of the lowest monthly payments |
| An important first step is to check your credit report, | | | | you’ll find, but this comes at a cost. The |
| preferably several months before you intend to apply | | | | payments are low for the first few years because |
| for a loan. You are entitled to one free copy of your | | | | you are not paying anything toward the loan principal, |
| report every 12 months so it’s easy to check it | | | | just the loan interest. This means you are not |
| out. When you receive your report there are a few | | | | developing equity in your house, and when the |
| things that should garner your attention. First, check to | | | | payments switch to a combination of interest and |
| see that the information it contains is accurate. Does it | | | | principal you will see your payment go up. |
| incorrectly show late or missing payments? Does it | | | | Summary |
| show credit cards or other credit accounts that are | | | | Obtaining home loans can be intimidating at first, but |
| incorrect? If you see anything that is not right then | | | | with a little information and research you can better |
| consult with the credit reporting agency regarding their | | | | prepare yourself for the loan process. Start by |
| procedures for making corrections. | | | | knowing what’s in your credit report and correct |
| If My Credit Is Bad Can I Qualify For A Mortgage? | | | | any mistakes that appear. Think about the type of |
| Usually the answer is yes, but the loan process will | | | | mortgage that will work best for you and check out |
| likely be more involved and the interest rate you’ll | | | | several lenders who offer that type. If you’re not |
| pay will be higher than if you have good credit. Look | | | | sure what kind of loan is your best option then ask |
| for lenders that specialize in loans for people with poor | | | | potential lenders to make a suggestion. Take |
| credit and learn more about the programs they offer. | | | | advantage of information resources at your local |
| Even though a mortgage will cost you more if you | | | | library, on the internet and in financial publications such |
| have bad credit, in the long run it can help you repair | | | | as magazines and newspapers. With some time and |
| your credit history if you make your payments | | | | effort you will be in a position to make an informed |
| faithfully. | | | | decision regarding a loan. |
| What Kind Of Loans Are Available? | | | | This article may be freely distributed providing no |
| Three basic types of loans are available to help you | | | | alterations are made to the text and the links remains |
| buy a home – fixed rate, adjustable rate and | | | | intact. |
| interest-only. A fixed rate loan comes with an interest | | | | This article may be freely distributed providing no |
| rate that stays the same throughout the loan term, but | | | | alterations are made to the text and the links remains |
| an adjustable rate mortgage (ARM) comes with an | | | | intact. |
| interest rate that may move up and down at various | | | | |