New home buyers have numerous loan options and interest rates to choose from. Your credit score will determine if you fall into high or low risk categories, but the amount of money you put down will also effect the outcome to a great degree. Mortgages for the first time buyer may seem intimidating, but there are several ways you can assure that you get the best bang for your buck. Whether you have good or bad credit, the down payment will effect your interest rates, but a larger down payment may be the only way those with little or bad credit can attain a first time home loan.
Every 5% increase in your down payment opens doors for lower interest rates and lower monthly payments depending on the duration of your payment plan. Many lenders will not even touch a loan unless you put down more tha 5% of the total cost. There are options for low down payments, but if you put 10% or more down, you will reap the reward of lower rates and increased loan options.
If your credit score is high, then lower down payment loans will likely be easier to secure. For those with poor credit, 10% down may be required. Although mortgages for the first time buyer can be hard to come by, if you stick to it and seek the help of financial specialists, you can get a mortgage deal that suits your needs. Just make sure you shop within your cost range and use your resources to help secure a stable and intelligent mortgage plan. Even first time home buyers can get a plan that will work for the long term finances of purchasing a new home.
Have you thought about looking into purchasing a home recently?