First-Time Buyer Mortgage Deals

First-time home buyers are those who are planning to buy a home for the first-time in their life. They are usually inexperienced at buying a home and are often cheated if they are not careful enough.
Since most first-time home buyers are not aware about the formalities while availing a mortgage, it is necessary that they familiarise themselves with the rules and regulations in the market so that their investments are not at risk. Often they do not have the nettle to sort the good from the multitude of bad mortgage offers that are available in the market. This is because first time buyers are often young professionals who would be too eager to buy a house that they have no time and inclination to assess deals on their merit. Therefore, such people often rush through the process of availing a mortgage and at the end suffer from availing mortgage plans that are not planned specifically for their needs.

First of all, it is very important to know how much one can borrow from a mortgage lender. The amount of money that one can borrow depends on many parameters. It is a good idea to visit mortgage lenders and ask for a written quote of how much they are ready to offer as a mortgage. This will ensure that a borrower can separate the hype from reality. Many lenders offer generous deals to first-time home buyers and therefore it is up to the borrower to capitalise on these deals.

The amount that one can borrow will be based on the size of the deposit and how much one earns. Lenders may offer around three times one's annual earnings. Similarly, if one is planning to borrow as a couple, three times the first income plus the second income, or two and a half times the joint income may be borrowed.

By R Rama