Equity Home Loans - i have a question about home loans for first home buyers?

i have a question about home loans for first home buyers?

hi, i am wondering ,as a first home buyer, is it better to have a deposit for your first home loan or is it acceptable to get one of those loans where you can borrow up to 106% and dont need a deposit, we find it very hard to save up for a deposit with three children and paying alot of money in rent,thanks for any advice.

Public Comments

Deposit is better .. it reduces your monthly payment ....... you need to save where you can ... really buckle down to get a down payment. This prepares you for owning the home too ....
The short answer is over finance any house and you will pay a higher interest rate in the end. A good credit rating and a base deposit will keep the rates lower and if you can get more then 25% of the cost down you exempt yourself from certain insurance premieres on the loan.
It would be best if you could save for a down payment but its not necessary. Work with a Realtor they work with home buyers for free. Also there are a lot of program that will give you 100percent of your loan for your home I don't know about 106percent that's sound more like if you are refinancing. Also if sellers are desperate they will pay your down payment and your closing costs for you but please get a Realtor.
A larger DOWN PAYMENT will lower monthly payments. A LARGER deposit is like a good faith or a sign to the seller you have money and money to purchase this type of home to secure it into a escrow until you are approved for the loan. In most states most people can't get 100 or 106 financing...If this is what you are looking for, your monthly payments will be extremely . I can set you up with an agent in your area. I have many close agents throughout the usa as I work international www.jessicarussellEstates.com
It is OK to get this type of loan, but you will not be able to refinance or sell the home until you build positive equity in the home. Just be careful and make sure you don't get stuck with a interest rate you do not want.
deposits are usually the way to go when buying a home, but also financing 100% is still very acceptable. With 100%, you're going to have two loans (generally) which consist of an 80% and a 20%. The smaller loan will always carry a higher interest rate. Bottom line: If you're comfortable with the payment and it's a safe loan (fully ammortized principle/interest) with a long fixed rate, then you should be just fine. If you have any questions, i'd be happy to answer them for you. All the best Eddie E. Realtor/Loan Officer sscamrs@yahoo.com
You ask a very common question for first-time home buyers, which basically is "how much can I afford?" Ideally you want to put down 20% of your home's value as a down payment. This way you can avoid private mortgage insurance (PMI), which can add money to your monthly payment. It also allows you have equity in your home should you have to sell quickly. That said, it's really up to you how much you want to borrow. Many don't have the down payment and there are numerous great options available, including the one you have already looked into. But be very careful about borrowing more than you can afford. If you should have to move before you've paid much into your mortage and you've borrowed 100% or more, you could be in very serious financial trouble. You also need to be aware of the many other costs of owning a home, such as insurance, taxes, maintenance, utilities, furniture, ect. Make sure you have a solid budget plan when you buy your home that allows for all expenses. This is extremely important if you go for a 100% or greater mortgage. I've included a link to our web site for first-time home buyers. You might that information useful as you make your decision. I hope this information helps.
saving is the key to uncertain future that is all i want to advice. plan wisely for better future