Hot Tips for First-time Home Buyers

First time to buy a home?  Don't be intimidated. Everyone starts somewhere. But while you don't have to feel daunted by the seemingly complicated process, there's no reason not to do a bit of work, which mostly consists of research and becoming informed. There are many things to know but you should always start with the basics. 

Deposit

Obviously, before you go hunting for a nice home, you need to have enough money for deposit. This would be around 5 to 20% of the property's cost. Saving less than 5% will give you fewer options of affordable mortgages.  Know about Tallahassee new homes for sale here!

 Costs

Besides the actual cost of the property you're buying, there will be other expenses you need to prepare for, such as survey and removal costs, insurance, solicitor's fee, valuation fees, and so on and so forth.  It's always wise to consult a real estate expert to be sure you're not missing anything.

Monthly Repayments

As a first-timer, this is the most important step you can take before searching for a property at http://www.manausa.com/new-construction.php .  Nowadays, there are very strict checks done on mortgage applicants. This may even include a "stress test," which is intended to reveal your actual capacity to continue your payments in various situations, such as interest rate hikes or starting a family. The process will require you to show proof of your cash flow before they decide if your application should be approved or declined.
Looking for a Mortgage

There are different types of mortgage packages to choose from, and making the right pick can be tricky. There are many things to consider, so again, talk an expert, such as a real estate agent or a mortgage broker. 

The Process

Whatever mortgage package you're interested in, your lender will determine your capacity to continue your repayments in case your financial circumstances change. Thus, you'll need to provide proof of your income, along with information on your outgoings, such as childcare, household bills, debts, clothing, etc.  This could mean producing bank statement and payslips, or, if self-employed, tax returns and business accounts covering the last two tax years 

Mortgage Guarantee

Lastly, if you're having issues getting a mortgage for your first home, you can get a guarantor mortgage, in which a parent or guardian or any close relative promises to fulfill your financial obligations in case you are unable to. Remember though that guarantor mortgages are very serious matter and are legally binding. Your guarantor should thus be able to indeed fulfill his promise in case you cannot continue making repayments for whatever reason.