Who gets buy downs? Buys downs are perfect for upwardly mobile. That is singles or couples who are purchasing their first home, but expect a rapid or substantial increase in their income within a couple of years.

Unlike a fixed rate mortgage your payments will be steadily increasing over years. In addition, unlike an adjustable rate mortgage, you will find yourself paying way over market rate for last few years of loan.

These types of loans are usually setup as 15-year of 30-year deals. The big advantage of course is that you can get a lot of house for very little money up front. However, seller or lender will reap a much higher rate of return on your loan than he or she should get on a fixed rate or regular adjustable rate mortgage.

It’s a great deal in beginning, but make sure you will have income later on to cover large payments plus your other household expenses.

Look for lenders online Once you have your credit information you can type in “home loan” into any major search engine and come up with a long list of banks, credit unions and other type of mortgage lenders. Once you find a few resources, fill out their online questionnaire and you are on your way to becoming a first time homeowner.

While you’re there, any good website should also have a mortgage loan calculator. Use mortgage loan calculator to figure out what type of payment would be most comfortable for your budget.

Read up on process and read all paperwork before you accept a loan One application process is complete, you can move on to shopping for your new home. Buying a home is probably largest single purchasing decision you will ever make in your lifetime.

Spend as much as time you as you can reading books, looking up information online and reading all paperwork before you sign to ensure that you have most up to date home loan information.