If you’re about to apply for money to buy your first home, you probably have some questions. The most important advice you’re likely to get during this journey is to ask those questions, and to keep asking until you get acceptable answers to every one of them. Keep in mind that all the options available to a second-time home buyer are also available to the first time buyer. The difference is that the latter has yet to prove his ability and willingness to make those payments. A good credit rating and a good down payment will help even the score.

Here are some things you should question as a first time home buyer.

Rates and terms – Interest rates and terms of the loan are important aspects of your loan. You may find a lender who simply wants to rattle off the payment amounts and expect that you’re going to be satisfied with that. Be sure that you know what interest rate you’re going to be paying and the length of the loan. Remember that lenders typically advertise their best interest rate, but that you may not qualify for that rate. A lender probably can’t tell you the interest rate you’ll be paying before you go through the application process, as both interest rates and length of loans are often determined by your credit rating.

Closing costs – Almost all home loans have some closing costs attached. There are two basic ways to handle those fees. You may pay them as part of the “closing” process or they may be financed into the body of the loan. In the first case, you’ll be required to come up with the money to pay those costs before you can collect the proceeds of the loan. In the latter, your loan will be increased by the amount of the closing costs – you won’t have to come up with the cash, but you will be paying interest on that amount. Be sure you know what closing costs will be required before you start the loan process, how much those fees amount up to and how you’re expected to pay them.

Patience is one of the most difficult emotions to display, especially when you have found the home of your dreams and you’re afraid that it might slip away. That fear can prompt you to make decisions without all the information. Remember that you’re agreeing to repay the loan to whatever terms are specified by the lender. If you can’t meet those terms and conditions, you’ll forfeit the house and ruin your credit. Don’t blindly accept any terms in order to get a loan. Take time to be sure that you understand all aspects of the loan and what your responsibilities are for repayment. After all, it won’t do you any good to accomplish a loan that you can’t pay off.

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