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How To Qualify For a First Time Home Loan

Published at 01/25/2012 07:37:41

Introduction to home loans

There is a dream that is dreamt by almost every person and that is to build their own home someday. However, a house cannot be built as such. There are lots of things that are required for the purpose of building a house. The first thing that people need is to finance a loan. Making home without taking loan is not possible for most of the people. Therefore, loans are required for the purpose of building your dream home. The dream is now being fulfilled by several banks and financial companies. There are lots of banks that are providing home loans to the people for building their dream homes. These banks are providing home loans on very easy terms and the rates of interest are not so high too. So, these are helping people in many ways of getting their homes build in time and properly without the shortage of money. if you are one such person who has never taken any home loan before, you can apply for first time home loan easily. There are lots of banks that will provide you.

Step 1

History of home loans
At the older times, it was very difficult to get loans for making home. There were very few banks and very few money lenders that provided the loans. The rate of interest was generally too high and people often were not able to make the repayment back. The condition of the home builders was done better by the introduction of home loans by the banks. Now, every bank I providing the home loans in very easy terms. People do not need to be confused now too much as in older times and they can easily take first time home loans from various banks now.

How to qualify for first time home loan?
There are certain things that are essential for qualifying first time home loan. You must qualify on the following basis:
1. You must be first time loan taker, it means that you have never taken any home loan before and you have never owned any real estate.
2. The second thing is that if you have taken the home loan before, you can still apply for the first time home loan if you are not taking ownership of your current residence from last three years.
3. You must have your own land for building the home or you must be purchasing the land in the targeted area.
4. You must be creditworthy. This means that you must be able to pay back the debt and there are minimum credit scores that may be applied.
5. You must possess signed purchase and sale agreement of the property that you are intending to build home on.
6. There must be some source of income that you have so that you can repay the debt.

Tip for the borrower
Part from all these terms and conditions, one must know the responsibility for paying back the loan. There should be the repayment in time so as to avoid various problems.


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