First mortgages from private guys

Buying your first home is a dream for many families. It is important to assess the requirements, compare loans and manage the process end to end. There are several options that are available to first mortgage applicants. A number of private funding companies offer first mortgages to home buyers at attractive rates of interest. The interest rates on these mortgages vary depending on the risk profile of the applicant and other criterions. There are different types of loans available for first mortgage applicants. They can either opt for a flexible loan or a basic loan. A flexible loan has several options such as early repayment or part repayment without any penalties. Flexible loans also offer Line of Credit or LOC facilities depending on the value of the home. These loans have fixed interest rates and fixed terms. Before finalizing the mortgage it is important to do a thorough due diligence on the property.

First mortgages are provided by private mortgage lenders who lend you the money and take first mortgage security on this property. A First mortgage from a private lender is an ideal option for individuals or businesses who do not meet or conform to the banks. The property bought is generally used as the principal place of residence, as an investment or to operate a business from. The term of the loan is generally between 1 to 12 months which can be decided during the application process. While applying for your first mortgage, an applicant needs to weigh up all these options before signing on the dotted line. Many private funders offer competitive interest rates on first mortgages which can be comparable to those offered by banks but they do charge a premium for their risk. An applicant can also utilise the services of a mortgage broker who can help to choose the best first mortgage loan as per the applicant’s requirements.

There are several benefits of going for a first mortgage. For example if you are a first home buyer, you have a home to call your own. There is no need to change leased apartments year after year. The annual increase in rent which is a standard practice in lease agreements burdens your monthly budget. The amount paid on rent is close to the amount of monthly mortgage payments. The value of the property will appreciate and can provide returns in the future. Even while moving to another place, the property can be rented out which will generate a constant cash flow. The first mortgage should be taken early in ones professional career as it will help in early repayment and the option to go for a second mortgage. Applying for a mortgage is the first step in ones financial security. With mortgage’s becoming expensive, a quick decision can prove beneficial.