We can help you explore all aspects of home ownership.  Discounted rates with lower payments certainly help the first time home buyers in the initial years. It is especially useful for people with a low income. Discount mortgages are cheaper than the other mortgages.   The first step for getting a loan for the first time home buyer is to get pre-qualified and pre-approved. Pre-qualification is important because the buyer will know exactly the kind of house he can afford. Pre-approval tells the seller that you are a serious buyer and you can meet the mortgage payments. Generally, you can purchase a home with a value of two to three times your annual household income, depending on your savings and debts. However, special loan programs are available for the first time home buyer to help them purchase homes with higher value.

A first time home buyer program specifically tailored for low to moderate income families is offered in almost all the states. There are two broad categories of mortgages: fixed and adjustable rate. All mortgages fall into one of these two categories. In a fixed rate mortgage, the interest rate is the same throughout the term of the mortgage. In an adjustable rate mortgage, the interest rate is subject to changes throughout the term of the mortgage. Within these two broad categories, there are many different types of mortgages. Each is designed to cater to people in different financial situations. Many of them are for the first time home buyer.

For most people, the mortgage payment may include three parts:

• A payment on the principal of the loan (that is, the amount borrowed);
• A payment on the interest;
• Payments into a special account (called an escrow account) that your lender maintains to pay for things like your hazard insurance and property taxes.
  These elements are called P.I.T.I. (Principal-Interest-Taxes-Insurance).

The closing is the actual settlement of the loan. A Loans NY.net Officer will give an estimate of the closing costs, the monthly payment and other mortgage costs.