How To Solve The First Time Buyer Mortgage Maze !

For first time buyers the mortgage process can seem complex and confusing.  On top of everything else you need to figure out interest rates, loan terms, fixed versus adjustable rate mortgages and much more.  In order to simplify and streamline the process it is best to do some research before you go and apply for a mortgage. Recommendations and endorsements in any sphere of life are always a good way to start so do your homework. There are a vast amount of financial institutions offering a vast array of mortgage products so contrast and compare.

Be In The Know 

You will need to have some cash in the bank before you can buy a home and many first time home buyers are surprised at the amount.  There are other financial factors to be taken into account not just your savings record.  Of course proof of your ability to save and thus in the future repay your mortgage is important but this only one component. Check your credit history i.e. repayments of previous loans to make sure that there are no issues from the past.  Financial institutions will take into account your current earnings but also into consideration what effect any change in your personal circumstances may have on your repayment capacity.

Plan For Out Of Pocket Expenses 

Once you have selected your chosen property and successfully gone sale agreed other additional costs will include a solicitor to handle the conveyancing on your behalf.  In most cases a structural survey will have to be carried out on the property by a Quantity Surveyor or Architect which you will have to pay for.  An independent valuation on behalf of the lending institution you are getting your mortgage through is obligatory and the fee involved has to be paid by you too.

So don’t forget the additional costs that can sometimes be overlooked and then cause a lot of stress. Moving of furniture budgeted in advance will make your closing date when you will finally get the keys of your new home a day to enjoy.  To avoid  stress plan well in advance and have the additional kitty close at hand so that your home purchase will be one of the best days of your life.

Enjoy The Experience

When it comes to buying your first home it can be a very exciting as well as a nerve wrecking time. By doing your research and preparing yourself for the process you can ensure it goes more smoothly and ensure you do not run into any nasty surprises.  Once you get that mortgage approval in principle letter from your chosen lender you can then start the fun part of searching for your first home!

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