| Buying your first property can be a very daunting | | | | your income and outgoings thoroughly to check |
| and stressful affair in the current climate, and it is | | | | that you can afford the monthly repayments on |
| vital that first time buyers are prepared and gain | | | | the mortgages, as if you fall into arrears you |
| as much knowledge as possible before taking the | | | | could end up losing your home. |
| plunge. Figures show that although there has been | | | | Once you have gone through the mortgage costs |
| a drop in the number of first time buyers | | | | and repayments, and have been approved by the |
| purchasing homes because of tight mortgage | | | | lender, ask for confirmation of the approval in |
| conditions, the global credit crunch, and falling | | | | writing. You can then use this to show the seller |
| house prices, there are still some first time | | | | of the property that you want to put an offer in |
| buyers getting their foot in the door, and these | | | | for, which could boost your chances of getting |
| buyers need to ensure they do the necessary | | | | the property over another buyer than has not |
| research to make the process as smooth as | | | | yet been approved. |
| possible. | | | | In the current financial climate most lenders are |
| Affordability is an important factor to consider | | | | asking for a considerable deposit even from first |
| when it comes to purchasing your first home, as | | | | time buyers, and this means that you may have |
| if you struggle with money you could find that the | | | | to fork out a fortune upfront. However, also |
| property is taken off you before you know it. | | | | remember that the higher the deposit level you |
| There are a number of different areas to look at | | | | put down the less you are at risk of negative |
| when it comes to your finances. Lending criteria | | | | equity from falling house prices. Don't forget that |
| varies from one lender to another, and the | | | | when you are working out whether you can |
| amount that you will be able to borrow based on | | | | comfortably afford the mortgage repayments |
| your earnings will differ between lenders. Do your | | | | you also need to ensure that you can afford |
| research and find out how much you can borrow, | | | | other payments as well, such as bills, council tax, |
| so that you know what sort of property you will | | | | shopping, and other costs. |
| be able to look at. | | | | When deciding what type of mortgage to go for |
| There are many different upfront costs that you | | | | you should bear in mind that interest rates are |
| need to take into account, and these will help to | | | | set to keep falling, which means that a variable |
| determine whether you can afford to take out | | | | rate mortgage may seem attractive, but also |
| the mortgage. Some of the costs that you may | | | | that a fixed rate mortgage may offer new |
| have to fund upfront include the arrangement fee | | | | homeowners increased stability and peace of mind |
| on the mortgages, the deposit, and fees such as | | | | for the first few years. |
| solicitor's fees. You will also need to go through | | | | |