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First Time Buyers

By: Justin21 Harrison21

First Time Buyers Obtain your Credit Report
You are entitled to a free credit report from both Experian and Transunion ITC once a year. Your credit report will play a very important role in your ability to secure a mortgage and influence the interest rate your mortgage will be subject to should you be approved. Request yours early on during the process.

When you review your reports, check for discrepancies. If there are any, you will be required to submit a written request, together with supporting documentation, to the relevant credit bureau, stipulating that a discrepancy exists and that the discrepancy should be removed from your report.

Identify a Mortgage Originator
The role of the mortgage originator is more than just guiding you through the mortgage application process. They will liaise with the various lenders, secure quotes and negotiate the best possible interest rates on your behalf. Their services cost nothing. The successful lender gets to pay their fee.

The reason why you need to appoint a mortgage originator during the planning and investigation phase already, is that your mortgage originator will also be able to explain to you exactly how a mortgage application is evaluated, the type of documentation the banks will require and how your particular circumstances stack up against the minimum requirements of the lenders in terms of extending finance. They can offer you guidance around the size of the mortgage you would potentially qualify for, how big a deposit you may need, and what the various taxes, duties and fees associated with purchasing a home within that price range, would tally up to.

You need to be very honest and open with the mortgage originator. If you are not likely to qualify for any form of home loan, it is better to know this sooner rather than later. The originator will be able to advise you on the actions you could possibly take to remedy the situation.

Know what you want
Decide upfront what your ideal start-up home should look like. The reason for this is that hunting for a home becomes considerably easier if you know what to look for. Make a list of what you consider to be essential (i.e. two bedrooms), preferred (i.e. room for pets), optional (i.e. electric gate) and undesirable (i.e. next to a railway station).

Now is also a good time to decide which area and, if you want to be more precise, which neighbourhood within that area you would like to live in.

Know the Neighbourhood
Getting to know the neighbourhood involves finding answers to questions like:
• What is the price of a home similar to the one I am seeking? How many homes such as these have entered the market in the last six months? How many homes such as these have been sold in the past three months? How long did it take for these homes to be sold?
• What are the crime statistics? Is there a neighbourhood watch?
• What are the rates and taxes levied on properties in the neighbourhood?

If you don’t like what you have found out, it may be a good idea to opt for a different location.

Double Check your Budget
Owning a home is different from renting a home where budgeting is concerned. You will have to consider – in addition to your mortgage repayment – expenses normally not incurred when you rent. This would include rates & taxes, maintenance, security services, assurance and insurance.

Identify an Estate Agent
It is important to select a reputable estate agent who is dedicated to your chosen neighbourhood, early on. The agent’s role will be multi-faceted: They are a valuable source of neighbourhood specific information, effective in identifying properties that would suit your requirements and in a position to help you through the mass of legal paperwork associated with the purchase of a property.

Once you have gone through these steps, you will be ready to proceed to the second phase.

Article Source: http://www.myarticlesdirectory.com

Justin Harrison is author of this article on Bond. Find more information about Home Loan here.

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