And this is even more so if you’re working in a metropolitan area where you find yourself paying a premium for even the smallest properties.
So as a first time buyer what are the things you need to keep an eye out to make the whole home buying experience that much simpler.
Do your homework
You also need to speak with friends and family members who have been through the process recently to receive their valuable opinion on what you need to and even more significantly shouldn’t do.
Mortgage Advisor
After having done your homework you still believe that you’re no closer to deciding on which company to use for your mortgage then you need to think about the support of a mortgage adviser. Though they will cost you cash for the information that they also have access to 100’s more mortgage adviser belfast deals from across the United Kingdom. Obviously you will need to find one, which isn’t associated with any of the creditors so that they can give you independent advice. They will also have the ability to advise you on First Time Buyer Prices which might not even be promoted by some of the main creditors in their regular advertising drives.
Decision making
As soon as you have all of the data in front of you be certain you ask plenty of questions prior to making the final choice. So whether you’re talking directly with the bank or using an independent adviser make sure and be thorough with your questioning.
You should also examine the fine print. For instance are there any penalties for paying off or transferring your mortgage early. For instance on some mortgages there might be a ‘redemption penalty’, which can be enforced if you proceed lender within 2-5 years of carrying out the mortgage.
Mortgage amount
Although you might have your heart set on a beautiful house you also need to temper your desire with if you can really afford it. Make sure and place a ‘realistic’ cap on how much you’re prepared to pay for your first property. Attempt to get as much of a deposit as possible instead of taking out a enormous Mortgage. You will profit from this in the long term.
Conclusion
Purchasing a home for the first time can be an extremely stressful time but you need to attempt to make it as stress free as possible by following the basic rules outlined in this report. There’s so much free information available for first time buyers in addition to the knowledge of all of the experts should assist you in making the experience a little less stressful, and possibly even enjoyable!
I’m regularly asked by customers about Reverse Mortgages and if they ought to consider this for themselves or a relative.
Reverse Mortgages are available in Canada for several years and can be advantageous for certain clients. A reverse mortgage, is similar to a normal mortgage except that the interest payments are refundable and the balance because of the bank, or lender, increases annually.
Reverse Mortgage Basics
No repayment of principle or interest is required as long as you, or your partner is residing in the House
Access funds up to 40 percent of the value of your home, this calculation is based on your age and the house ‘s appraised value
You must be at least 60 years old to qualify for a reverse mortgage
Get the funds as 1 lump sum, or in place payments over time
The funds you are getting is from the equity, therefore there is no income tax due
Interest rates are generally much higher than best rates provided for standard mortgages
Set up fees comprise Legal Fees, Appraisal Fees and Administrative Costs are typically somewhat higher than for a standard mortgage
The benefits of a reverse mortgage include getting tax free funds in one lump sum or over multiple withdrawals without needing to make monthly interest and principle payments. You keep ownership and control of your dwelling.
The disadvantages of the reverse mortgage include high rates of interest and fees to set this up. You can only get up to 40 percent of the value of your house and you and your partner must be at least 60 years old to qualify.
There are other mortgage options which don’t have any of the constraints of the reverse mortgage. Consider a Home Equity Line of Credit or regular mortgage.
Mortgage
If you establish a mortgage, then you’ll receive all of the cash up front, there’s absolutely no choice to get funds over time. Consequently, if you set up a mortgage for $100,000 then you will get the $100,000 and begin paying attention for this money straight away. When you refinance your home this manner, you generally get the best mortgage prices.
A Home Equity Line of Credit could be installed using a limit up to 80 percent of the value of your dwelling. The Home Equity Line of Credit functions much like a credit card, but with a much larger limit and a far better rate of interest. You don’t need to withdraw any money until you will need to and you pay interest only on the funds that you’re using at the moment. There’s a minimal interest only payment due every month.
To establish a Home Equity Line of Credit or Mortgage, you’ll need to pay legal fees and appraisal fees.
When thinking about any mortgage funding, always talk with a mortgage broker or mortgage adviser to obtain all of your options and review the advantages and disadvantages before signing on the dotted line.
Steven Crews
Steve is a Mortgage Advisor with Jencor Mortgage and has been helping customers with their mortgage needs for over a decade. He works with many clients such as: first time buyers, experienced investors and homeowners.
Clients experience a smooth and effortless process whether they are wanting to buy a new or resale home, a second homes, investment property or refinance their current property for any use. Steve helps his clients to get the best possible solution for their unique needs.
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