Here Are the Pros & Cons of First Time Homebuyer Loans
Part of being a first time home buyer means that you will have to make some pretty big decisions. Before you make your final decisions on anything, you should know the pros and cons that come with first time homebuyer loans.
Pros of First-Time Homebuyer Loans
Let’s start with some of the positives. These types of loans work in favor of the buyer. Buyers that cannot meet the requirements of high interest rates or large down payments
can often get a first-time homebuyer loan as a method to getting a great home without going broke or messing up their finances. With lower interest rates and lower payments, this is definitely a plus for first-time homebuyers.
A good method to buying any home
is saving ahead of time. Another great thing about first time homebuyer loans is that, even if you have saved up money, you can still have extra cash left over. Low interest rates are carried with just about every loan of this type so you can still afford your mortgage
payments with money to spare.
Cons of First-Time Homebuyer Loans
Now for some of the cons. The insurance requirements tend to be a bit lengthy with these types of loans. Also, even with placing a high down payment, there is still the possibility that your mortgage
rate could still be higher than you want.
Another con that can go with some of these loans is the fact that while many loans do not require insurance, these can. Oftentimes, the lender
will have their own type of insurance that they will require you to purchase from them. In cases like this, you can expect the fees associated with this insurance to be higher than average.
Deciding on the type of loan to get can be challenging. However, if you can talk to your lender or banker, you will quickly learn which is the better option for you.