Tips On First Time Home Ownership

By Author: Alisdair Cosgrove
Total Articles: 184
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Buying your first property can be a very daunting and stressful affair in the current climate, and it is vital that first time buyers are prepared and gain as much knowledge as possible before taking the plunge. A number of factors has led to the number of first time buyers purchasing property falling over the past year, and these factors include lack of mortgages, the effects of the global credit crunch, and falling property prices. However, for those that are still looking to get onto the property ladder it is vital to carry out thorough research.

Your finances will be one of the most important factors when it comes to buying your first home, and you need to ensure that you can afford the property to avoid losing it after you have made the purchase. There are also other areas that you need to consider when it comes to your finances. Lending criteria varies from one lender to another, and the amount that you will be able to borrow based on your earnings will differ between lenders. Do your research and find out how much you can borrow, so that you know what sort of property you will be able to look at.

You need ...
... to bear in mind that there are many different upfront fees that you may have to pay out when taking out a mortgage, such as solicitor fees, mortgage arrangement fees, and a hefty deposit, and in order to work out whether you can even afford to take out the mortgage you need to determine whether you have the necessary funds available for the upfront payments. It is important to go through your income and outgoings thoroughly to ensure that you can comfortably afford the monthly repayments on the mortgages, as you could otherwise lose the property if you fall into arrears.

Once you have gone through the mortgage costs and repayments, and have been approved by the lender, ask for confirmation of the approval in writing. You can then use this to show the seller of the property that you want to put an offer in for, which could boost your chances of getting the property over another buyer than has not yet been approved.

It is worth remembering that lenders are requiring larger deposits from even first time buyers these days due to the current financial climate, so you may need to find a large sum to put down by way of deposit. Wherever possible you should try and put down as large a deposit as possible, particularly given that house prices are falling. Don't forget that when you are working out whether you can comfortably afford the mortgage repayments you also need to ensure that you can afford other payments as well, such as bills, council tax, shopping, and other costs.

Many first time buyers may enjoy greater stability and peace of mind from a fixed rate mortgage over a variable rate one, although it is also worth remembering that the base rate is set to continue falling over the coming months.
Alisdair Cosgrove is an expert in the field of personal finance in the UK and has been writing articles on the web for many years and can find more of his information at the UK site Glitec.co.uk, offering cheap loans and also a great deals on home improvement loans. Visit Glitec.co.uk today for a great mortgage and loan offer and to read more articles from Alisdair.