What Kind of Loan Should a First-Time Home Buyer Get?
The recent trouble in the sub-prime mortgage industry has made many people take pause. So it begs the question: what should you do if you’re a first-time home buyer and have bruised credit? Is a mortgage even possible? If you have less-than-perfect credit, don’t think you’re excluded from getting a mortgage–it still may be available to you. Lenders use four different factors to qualify you for a loan– credit is just one. The others include your assets, how much income you make and the property you’re looking to finance. If you’re weaker on one factor, you may be able to compensate by being stronger on other factors. For instance, if your credit score isn’t quite high enough to qualify you for a particular loan, you may still qualify if you have, say, lots of assets or make a good enough income to prove to lenders that you can handle paying back your loan. There are many different types of mortgages available, but most fall into three main categories: adjustable rate mortgages (ARM), in
