10:59 08 June 2013
The thought of buying your first house can be extremely exciting. However, as this is one of the biggest financial decisions that you’re going to make, it can also be overwhelming and nerve-wracking.
For most buyers, the first thing that they need to think about is to choose a mortgage. You’ll be happy to know that this process is very straightforward. Banks and other lenders are working very hard to offer special mortgage packages to first-time buyers. To get more business, they usually offer incentives such as low fees and cash backs.
One of the most frequently asked questions of first time buyers is: How much can I borrow? The answer to this depends on your earnings. Lenders will typically consider the amount of money that you earn and the impact of future interest rate when calculating the amount that they will lend you. Of course, you’ll be able to borrow more if you’re earning a lot and if you have excellent credit score.
Aside from applying for a mortgage loan, the other thing that you need to do is to save for a deposit. You would want to put as much money aside as possible as this will help you lower your monthly payments. Giving a huge down payment (30per cent and above) would also help to increase your chances of getting your mortgage loan approved.
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