Every family’s dream is to live in a beautiful and comfortable house. Buying your first home is an exciting time; however there are lots of decisions and plans to make especially if you are a first- time house buyer, before jumping into buying your dream house. Let’s face it, not unless you are wealthy and born with a silver spoon or you won the lottery then buying is as easy as 1-2-3. Nevertheless, any person who has never owned a property before has a great chance to own a house through mortgage. There are a lot of lenders in the market that offers a great choice of rates and options for first time buyer mortgage. Qualifications in applying for a residential mortgage will depend largely on the size of your deposit and your credit score. Consulting brokers from mortgage- lending companies can help you find out and determine the type of mortgage that suits your finances well.
The first thing to do is to assess your affordability, it is important to save for a deposit to put down in order to qualify for a mortgage, keep in mind that your mortgage payment will be one of your major regular financial commitment, calculate first how much you will borrow, add into account your other monthly financial commitment such as utility bills, insurance, groceries, gas expenditures and others to make sure you don’t stretch your finances to the limit.
Traditionally, a lender will assess or evaluate an application of a first time buyer mortgage based on income and good credit standing, however lenders nowadays have become more conservative in the amount they will lend because not every borrower can be able to keep up with repayments. Hence the process of assessment and evaluation is a standard procedure.
Next, decide on the choice of your home; think about of what you need and what you can afford. Proximity and accessibility to work, school, market, hospitals, transport links and more should be taken into account.
Third, choosing a newer house is wise as it is generally cheaper to maintain for the first few years. As a first-time buyer mortgage you will be very appealing for sellers who want to sell their property immediately.
Lastly, read and understand the contract first before signing because once you signed a contract you are bound and obliged to buy it. After buying a house, make sure to insure it to prevent more troubles and problems should the unexpected arise. File and secure your payment documents carefully as you may need them in the future.
Home mortgage is the answer if you are seeking to get a foothold on the housing ladder. Yet it is deemed necessary also to keep in mind that if you do not keep up repayments on your mortgage your house may be repossessed in the long run.