Loan Originator Vahe Hayrapetian on the Different Loan Options for First-Time Buyers

Loans have been the primary answer of most millennials when asked how they intend to start independent living. In taking out a home loan, however, it is important to remember that there are many different kinds of programs, each with its own advantage and disadvantages. With the correct loan program, a first time home buyer can buy a home that they could be content with without eating up all of their savings. The wrong loan product, however, can only provide very little assistance, with long-term payments that might prove to be a heavy burden later on.

Loan originators like Vahe Hayrapetian remind people that while credit scores are important determinants for your financing options, there are loan options which can offer you a good loan amount despite less-than-stellar credit scores. Here are some financing options for first time home buyers to look at:

• First Time Buyer Loan – The FHA (Federal Housing Administration) provides loans with high loan-to-value rates, comfortable interest rates, and lower income and down payment requirements. Most first-time home-buyers can borrow as much as 97% of the property value, so you don’t have to worry about growing old before you save up enough cash for a home.
• Down Payment Assistance Loans – You can combine this loan with the conventional first time loan in order to receive 100% financing for your first major life purchase. However be careful not to overestimate your paying abilities, as some borrowers who opted for this kind of arrangement ended up defaulting their mortgage due to their inability to pay.
• Fixed and adjustable rates – All loans can be classified as fixed, adjustable, or mixed/hybrid of the two. A fixed rate basically means that you will be paying the same monthly amount until the house is paid for. This is true even for long-term loans of more than 20 years. Monthly payments on adjustable loans, on the other hand, will increase over time. A safer option would be fixed rates, but if you’re confident that you’ll be earning more in the coming years, then an adjustable rate could be the right choice.

It is important to select a good loan program, in order to get a great first home that you can comfortably live at for a long time. In the process, you might need to see a lot of loan officers, and mortgage brokers; or you could consult with loan originators like Vahe Hayrapetian, which can help you skip the long process. If you’re looking for ways to improve your credit score, you can visit bankrate.com/finance/debt/7-simple-ways-improve-credit-score-1.aspx.

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