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Main Parameters for Choosing City to Buy New House for First Time Home Buyers

The first and foremost factor to be considered while choosing a city for buying a new home for the first time is the availability of...

Thursday, August 17, 2017

The first and foremost factor to be considered while choosing a city for buying a new home for the first time is the availability of a good number of Mortgage Loan providers who can give the best service and lowest possible rates. This is most probably a long term association and the availability of such reputed home loan providers particularly for first time home buyers is vital.

The next important factor is the stability of the real estate market in a particular city with minimum volatility which also indicates a positive price trend during the past five years. This ensures a safety for the capital involved and the financial commitment one has to make for the long term and gives a decent return on investment in case there is a need to leverage the financial value of the house sometime during the future. First-time home buyers are also keen to look for cities with availability of affordable housing where prices are not artificially inflated.

The other important factor is the size of the city and the population levels in cities ideally suited for first time home buyers. A survey shows that first time home buyers opt for a city with ideally a population level of approximately 80000 to 90000. Mid-size cities with moderate population levels and growth rates seem to be the preferred destinations for first time home buyers.

In addition to the above parameters first time home buyers look for cities that are safe for their families and also provide an opportunity for career growth and development. Educational facilities, Health care, lower cost of living and the average number of years new home buyers tend to stay in a particular city are other important factors considered by home buyers before deciding on a final city of choice.

Main Parameters for Choosing City to Buy New House for First Time Home Buyers

Wednesday, August 9, 2017

There are innumerable offers from several home loan providers for first time home buyers that it is imperative to do a comparison of various mortgage loan offers before shortlisting a few and make a decision to go with a specific lender who is a preferred choice.

Based on a survey of various websites that have aggregated these offers available online given below is a sample list of best mortgage loans on offer to the first time home buyer. It pays to do more research before arriving at a final choice of home loan provider. Remember that these relationships may last 30 years or more!

Northpointe Bank - 30 year fixed -  All values are based on information provided by lender and compiled based on online survey of content aggregating websites. For an exact quote contact the lender.
Phone: (877) 526-4958
APR 3.750 % Tue Aug 8
RATE 3.750% at 0 points
PAYMENT $1,343 / Month
FEES - Nil

Optimum First Mortgage - 30 year fixed - All values are based on information provided by lender and compiled based on online survey of content aggregating websites. For an exact quote contact the lender.

Optimum First Mortgage
Hours of Operation - Monday - Friday 7AM to 7PM.
Phone: (877) 214-3366 Email: info@optimumfirst.com
APR 3.668 % Tue Aug 8
RATE 3.625% at 0 points
PAYMENT $1,323 / Month
FEES $1,523

Direct Home Lending - 30 year fixed, 0 points refi - All values are based on information provided by lender and compiled based on online survey of content aggregating websites. For an exact quote contact the lender.

Phone. 800-575-3648
Email. info@directhl.com
Hours of Operation  Monday-Friday 9am-6pm
APR 3.750 % Tue Aug 8
RATE 3.750% at 0 points
PAYMENT $1,343 / Month

First Time Home Buyer Mortgage Rates

Monday, July 31, 2017

Continuing with the research related to home loans and mortgages for first time home buyers here is what a research amongst the top financial advice and consumer affairs websites threw up. an unanimous choice seems to be Quicken Loans with websites like Nerd Wallet, Bank Rate, The Simple Dollar, etc., giving it a top rating. Other names mentioned frequently amongst these review websites are Wells Fargo, U S Bank, Citibank, Chase, PNC Mortgage, etc. Special mention about a bank that was specifically very helpful to first time home buyers goes to Alliant Credit Union.

The over all experience of applying for and availing mortgage loans has been improving year on year during the past few years based on a survey. This is mainly due to the better communication process adopted by the various player in the mortgage loans sector. These companies have adopted a simpler online process over the past few years which makes it easy for first time home buyers to get their mortgage loans pre approved almost completely online with out the need for a physical visit to the concerned bank.

In spite of all these improvements the main complaints of the first time home buyers had with the mortgage lenders was the surprise element in the closing costs and the misleading and somewhat hidden nature of such costs which were higher than expected values.

Other factors which swayed the customers towards a particular mortgage loan provider was a nationwide presence and easy accessibility. Easy accessibility means the mortgage loan provider was available with out the need to go through middle men.

The financial aspects of the mortgage such as the rate, tenure and down payment deserves a separate post! 

Best Mortgage Lenders for First Time Buyers

Sunday, July 30, 2017

Once the decision has been made to buy a house rather than renting the next important decision to be made is to decide upon the home loan one should opt for. Home loan or mortgage loan as an option involves deciding upon some vital pre-requisites before arriving at an actual choice of home loan provider. First thing is to decide how much loan can one afford to take up comfortably. Choosing the amount to borrow requires a lot of caution and depends on an individual's ability to repay meaning his or her current and future earnings. The second most important decision is to decide as to how much down payment one can afford to make while availing a home loan or mortgage loan. The final factor to be considered before finalizing a mortgage loan is to understand the various costs involved with any mortgage loan and home buying process.

 A few expenses related with purchasing a home appear before you begin making standard home loan installments. These include:
  • Home loan application expenses
  • Earnest deposit
  • Initial installment
  • Shutting costs
Home loan application charges

Application charges incorporate "beginning" (or "administration") expenses, which can be level charges, or can run from 1 to 2% of aggregate price tag. There are likewise examination, endorsing and credit detailing charges. These can once in a while be worked into the end costs.

Earnest Deposit

This is an underlying store to be paid to the dealer if your offer is acknowledged, to put weight behind your goal to purchase. In the event that yours is among different offers on a home, the Earnest deposit you put down (otherwise called a "good faith deposit") may impact the vender's basic decision to support you.

Initial installment or Down payment

You can frequently get the best home loan rates by paying a higher home loan initial installment. Initial installments can extend somewhere in the range of 0% to at least 20% of the aggregate cost of the home. 15% to 20% is perfect. Paying home loan focuses in advance can likewise help bring down your installments and intrigue.

Shutting or closing costs

Last shutting costs commonly extend from 2% to 4% of the aggregate advance sum. Once in a while shutting expenses can be moved into the home loan credit sum, which implies you can pay them off as you pay down your home loan. Shutting expenses can include:

  • Home loan application expenses (see above)
  • Home loan focuses
  • Lawyer's expenses
  • Reviews and studies
  • Title protection and title look
  • Escrow store
  • City recording expenses

Home Loans for First Time Buyers

Thursday, July 27, 2017

As a first home buyer the primary decision to make is the whether it makes sense to buy over lease.

Why purchase rather than lease?

Your regularly scheduled installments assemble value and lead toward home ownership. With a settled rate contract, your regularly scheduled installments will continue as before for the life of your loan. Your interest payments might be tax deductible. (Property tax and home loan interest may likewise be deductible; counsel your tax advisor.*) If your home appreciates in value, you can make a good profit when you sell. A home can be passed on to kids or other family members. Home value (the sum you possess) can be utilized to back education expenses, home-improvement projects, private company startup costs or other needs. You can roll out improvements or upgrades at will. A landowner can't choose to offer your home for sale and drive you to move residence.

Advantages of Renting over Mortgage Loans

Scheduled mortgage installments might be higher than monthly rentals. Rental payments or a short term commitment when compared to mortgages. Landlord performs (and pays for) repairs. Lease installments may cover machines, furniture, utilities and even link/web. No huge up front payments or advance closing costs are required to begin leasing. Landowners will not investigate your record as a consumer the way contract loan specialists will. Lease installments that are a couple of days late commonly won't hurt your FICO rating. It's less demanding to sign a rental agreement than to get approved for a home loan. There's no risk involved if the housing market tanks! Easy to avoid home protection premiums or other related expenses.

First Home Buyer - Leasing vs Buying

Sunday, July 23, 2017

Financial aspect of first time home buying involves extensive research and planning. In a recent study it was found that the current generation of youngsters considered saving for making their down payment for their first home loan as the biggest challenge being faced in realizing their American Dream. There are several  Government and Non-government agencies that help first time home buyers with grants, loans and mortgage assistance. It makes sense to research the various financial options available before deciding upon the choice a first time home buyer mortgage.

A few options to be considered before choosing a first home owner's loan are given below.
  • The Federal Housing Administration insured home loan, which provides a safety net for even the best mortgage lenders for first time home buyers, is an option to be considered by first time home buyers.
  • Other options to be considered that are offered by Government Agencies are the schemes by the Housing and Urban Development Department, USDA, department of Veterans Affairs, etc. For example the Friendly Neighbor Next Door first time home buyer loan program offered by the HUD is specifically for teachers, law enforcement officers, emergency medical treatment technicians and fire-fighters.
  • Low down payment mortgage schemes and low interest mortgage schemes provided by local lenders sponsored by the two Government Sponsored Agencies Fannie Mae and Freddie Mac are some of the best loans for first time home buyers to be considered.
  • The Native American Direct Loan program, The Energy Efficient Mortgage program and other Local First-time Home Buyer grants and programs offered by individual states and cities are other options to be considered. 

First Time Home Buyer Choices