Loan qualification In order to qualify for the loan two main things are Prequalification Prequalification is the process used to find out how much the consumer can afford to borrow as loan depending on the money he earns as income as well as the other assests he has in his possession,which taken together determines if the consumer is liable for getting the loan. Preapproaval : Preapproval according to the lender means deep examination of the details provided by the consumer regarding his credit history,property as well as his financial status which are verified independently by the lender during the preapproval process.After all the facts gets verified by the lender the consumer will get a written commitment for lending on a specified property Choose the right mortgage Their are mainly 3 types of mortgage for First Time Home Buyer A Fixed-Rate Mortgage: It is a mortgaeg where the interest rate stays the same throughout the life of the loan.that is the monthly paymnet remains same thourght out the loan. This amount will change only if your homeowners insurance or property taxes escalate, but it will l not change if market rates go up.This mortgage is available 10, 15, 20, and 30 years term.generally the shorter the term, the lower the interest rate, and eventually the less you'll pay in interest over the life of the loan. But if you want to keep your monthly payment as low as possible, a longer term is a better choice. Adjustable rate mortgage: An Adjustable-Rate Mortgage is a mortgage whose interest rate changes depending upon market conditions .that is monthly payment changes through out the loan.as the monthly paymnet keep on changing this loan offer a lower initial interest rate. their are Different types of ARMs available in the market , with varying rate. Hybrid mortgage This type of mortgage is combination of both fixed rate mortgaeg and adjustable rate mortgage.The most common hybrid on the market today is a loan that is fixed for the first five years and then changes to a adjustable rate mortgage for the remaining term. Generally the fixed term of the loan is at a lower interest rate when compared to current market rates. Different Loan Programs Different loans progrmas are available to in the indusrty to meet the needs of the people with specific criteria . some of the special loan programs are FHA loan: also know as Feredeal Housing Administartion,it is a governmanet establish corporations which introuduced to help This type of mortgage is government insured mortgage .The advantages of FHA is no income limit to qualify and you can keep less cash to qualify under liberal guidelines.Both fixed and adjustable rates are available on FHA loans.Interest rates and insurance fees may be higher than those available with a conventional loan. VA loan No down payment under most circumstances available in both fixed and adjustable ineterst rate Their no minimum minimum credit score required It offers 30 year fixed loan program. are some of the advantages of VA Loan also known as veterans administration. The Veterans and members of the National Guard. should have certificate of eligibility. PURCHASE Once you have found the home of your dreams and are ready to make a purchase, there are a few things you need to know before signing a contract. Interest rate : interst rate is the fee charged for borrowing money.this rate may vary depending upon the current market rate at that time .so you can "lock in " the loan when the current interest rate is low and best suits your condition. Realtor fees : generally both Seller and buyer pay these fees . closing cost : these are fees paid by the lender to process your mortgage loan,This cost cover all transactions related to a home purchase-including appraisal fee, title insurance fee, recording fee, document preparation fee, credit report fee, application fee, and origination fee. As a borrower you need to pay back the cost to lender. This may range between 3 and 6 percent of the total mortgage loan amount Golden Rule - An educated buyer is a smart buyer. The more you know about purchasing a home, the better is a deciion that will serve you well both financially and emotionally.

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