If you are a first time home buyer, you might get cowed down by the zillion procedures that need to be done regarding purchasing a new property. Of course, financing your home might be the first of your concerns. Here is a guide to the various mortgages available to first time home buyers.

As soon as you purchase a home, you are eligible for a home equity loan. However, since equity is built slowly over the years, it can take a couple of years for you to qualify for a loan against it. For the home equity loan to be approved, the homeowner must be in ownership of at least an 80% loan-to-value ratio remaining after the home equity loan.

Buying home is a task, and in today’s world where the prices of homes are going sky high, and the income still remains the same, it becomes difficult to buy the first home with full down payment. People have been struggling everywhere to make a living and buy a home for themselves.

A good credit score equals easily obtainable loans from banks when you need it. Right? Yes, but does that mean people with bad credit scores because of unforeseen circumstances can never get loans again? There are private mortgage lenders who provide home equity loans and asset-backed loans to those who have low credit ratings.

WHAT IS A HOME EQUITY LOAN? The home equity loan is a type of loan that can be considered as consumer debt. With the help of a home equity loan, a consumer may raise fund by keeping his home as collateral. By this way raising funds the borrower gets the amount of the home at the present date and further subtracting owing to the owner on the collateral after calculating home equity loan closing costs.

Are you one of those who hates monthly installments? Would you rather prefer living in a rented apartment, not wanting to worry about availing home loans, repaying them and maintaining your home? Here are a few important reasons that could possibly change the way you look at this situation and probably decide on buying a home.