Mortgage & Finance Help First Time Home Buyers

After the great subprime mortgage crash and subsequent recession of 08-09, banks and lenders have introduced stricter provisions for mortgage & finance qualifications. Even so, the doors are still wide open for someone who knows how to put up a strong financial statement. Truth is, banks have fully recovered from the recession, and they badly need home buyers.
First thing to know is that a mortgage - any kind of mortgage, is going to need a hefty down payment. Also to be noted that fixed-rate loans are more in vogue than Adjustable Rate Mortgages (ARM). This is mostly because a lot of people got sucked in with unmanageable ARMs and lost their homes.
This doesn't, however, change the fact that a good Adjustable Rate Mortgage can save a lot of money in the long run. With fixed-rate mortgages, all that really needs to be worked out is the repayment period, as in the size and number of mortgage payments. For an ARM, get hold of a mortgage rate calculator on the internet, and start comparing offers. The most important thing to understand here is the difference between the interest rate and the APR, or annual percentage rate.
Not knowing this is what got so many APR loan holders in deep trouble. Credit ratings are also more important now than they were before. Bad credit is a sure-fire way to get a loan application rejected. The only way it can be done is with hard work, by saving money for a big down payment and taking the trouble to improve the credit rating.
The only way to be a home owner today is to work hard, save money and build up a good credit rating. That said, many people have lost their homes and a lot more, inspite of having done their best. This was because many buyers did not plan for the slump in property values or the erratic fluctuations in mortgage rates. In some cases, the value of the property dropped down below the loan balance.
Borrowers lost the home, the payments that had already been made to the lender, and on top of that ended up owing the difference to the lender. To make sure this doesn't happen again, it is of utmost importance to do a lot of research first. Find the right loan and the right lender before selecting a property.
Get pre-approval for the loan, and only then set out on a hunt for a suitable home that matches the loan limits. This leaves enough room for mortgage & finance variations, and possible refinancing. It's also a good idea to maintain a contingency fund for making mortgage payments, to offset income loss or unexpected expenses.