A home, or domiciliary home, is a residential space used primarily as a semi-permanent or permanent residence for an individual, family or group. It may be a single family dwelling or multiple unit dwellings accommodating more than one family or individual. It is normally a fully enclosed area and will often have both exterior and interior elements to it.
As with any real estate transaction, there are certain steps that must be taken by first-time homebuyers to ensure that they are making a good investment. First and foremost, it is important for a buyer to understand the difference between a principal residence and a rental. The former is typically built on a piece of property that is owned by an individual or company while the latter is typically built on a piece of residential land owned by another entity. With a principal residence, the buyer of the property actually owns it and is the legal owner of all the underlying land and assets therein. A rental on the other hand is considered a tenancy in common, wherein a tenant is responsible for the upkeep of the property.
Another thing to consider when it comes to saving money with a first time homebuyer mortgage loan is the use of a home equity loan. This is where homeowners use their home’s equity as collateral in case they are unable to make their monthly mortgage payments. In this manner, the borrower is able to borrow money from a lender based on the equity that is present within the principal residence. In the end, this lowers the interest rate that is applied to the loan as well as extending the period of time that the borrower is able to repay the loan.