A Guide for First Time Home Buyers

Tuesday, June 26, 2012

A Guide for First Time Home Buyers


A first time home buyer is always in need of some help. Buying a home may be your biggest financial commitment in life. Moreover, the whole experience can sometimes be time consuming, frustrating and expensive. Therefore, you need to keep few things in mind when you start looking for a house or mortgage for the first time in your life.

Expenditure

This is the first thing to check for a first time buyer mortgage. You need to make sure that you will be able to pay back the mortgage in time. You have to keep a check on your credit history before you apply for a loan. You will also have to calculate if your salary and other benefits will be able to cover your monthly mortgage payments and the down payment options.



Costing

There may be a difference between the cost that you expected and the actual cost which you will have to pay while buying a house. Keep a check on the lender’s fee or the loan officer’s charges before you pay the upfront costs. You may also have to pay on building insurance, life insurance, bills and taxes etc. in case you are going for joint mortgage. Make sure that you keep a check on all costs while buying a new house.

Choosing the right place

Always visit the place with a person whom you trust. If possible and your budget allows, go for a well established realtor in the area. Check all the rooms properly. See if any repairs or renovations need to be done. You may also check for central heating and if it is working fine. A house without any furniture may look large. Keep this point in mind if space is of concern to you. A house which is on sale often requires a home information pack. This pack may include title deeds, local authority searches, home energy assessment etc.

If you think that you have made a choice ask the seller to take the house off the market. This way there won’t be any more bids on the house and the prices would not fluctuate any further. Try to strike a deal at a price you want.

Mortgage

Avoid estate agents who usually offer you financial services. They may even try to set up a mortgage for you and unlikely to get you a good deal. Mortgage lenders can give you a good package over the phone or Internet. You just have to give your bank details along with other needed documents. Most mortgage lenders charge a high fee with low rates or low fee / no fee with high rates. If you are looking for a big loan, high fee and low rate is the best option.

Contracts

Make sure that you are clear in your mind before signing the deal. While handling first time buyer mortgage, people are often not sure about the whole deal and end up losing the deposit. You can finally shift in your new place within a fortnight of exchanging the contracts. In certain unavoidable circumstances, this may be sooner. But solicitors usually avoid this.


Author’s Bio:

Sachin writes about travel, finance, business, fashion, computer tips, technology, internet marketing and tutorials. He loves traveling and making new friends.

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