How To Get Financing For Your First Home Purchase

house of moneyIf you have made the decision to purchase a home, you must now consider how you will get the financing to do the purchase. There are several ways you can get the financing, but is it good to note that there are terms and conditions that apply. So, before you decide that you want a certain form of financing, you need to understand all what is involved in that option. As a first time buyer, it can be a daunting task to get the best financing option. However, you do not have to worry because this article offers you some great ways on how to get financing for first home purchase.   The following advice was given to us by Edmonton Real Estate Pro Sam Ireland.

 Saving for a deposit and other costs involved in the home purchase

Before you begin to look for a home, you need to start saving. It is advisable that you try to save at least 5 percent to twenty percent on the entire cost of the home that you want to purchase. However, saving more than 5 percent will make the process easier because you will be able to apply for the wide range of cost effective mortgages offered to first time property buyers.

 Cost effective property buyer schemes 

There are several schemes available for home buyers that help get them on the property ladder. There are government backed schemes that aims to provide first home buyers the financial support that they need in order to acquire homes. Some of the schemes available include affordable housing schemes, help to buy scheme and shared ownership schemes.

 Finding a mortgage 

There are several mortgage deals that you can pick from when you want to make your first home purchase. With the different types of mortgages available, it can be a bit tricky to know the one that is right for you. Thus, it is important that you perform research and seek advice from real estate advisors or brokers on the one that is perfect for you according to your situation. To ensure that you take the right mortgage you need to:

  • Understand the different mortgage types effectively.
  • Get the right mortgage advice.
  • Understand how to use the different mortgage calculators in order to help you get the one that is appropriate for you. 

 Leasehold and freehold 

If you are looking to buy a house, chances are high that you will be buying the freehold. This means that you own the house and the land it sits on. On the other hand, if you are buying a flat, you may be purchasing leasehold, or you are purchasing into a share of the freehold. It is important that you understand the differences and financial implications involved.

The application process

Whichever mortgage that you want to apply, it is good to know that your lender will need to know that you have the ability to make the payments in case the interest rates go high or there is change in your financial status. If you are struggling to get a mortgage, you can also consider a guarantor mortgage. The guarantor will be responsible for the payments if you are unable to pay them.

Useful Links:
www.crea.ca

| February 4th, 2015 | Posted in Uncategorized |

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