| rsquo;t start searching for a home before you | | | | 4. Your credit rating is an important factor |
| have chosen a mortgage lender and established | | | | affecting interest rate and other terms of the |
| the loan you can get in line with manageable | | | | first time home loan. If you have a poor credit |
| monthly payments. If you shop for a home first, | | | | rating, try and improve this before applying for a |
| you might end up overstretching yourself | | | | home loan. That said, you can look for what are |
| financially with disastrous results! | | | | called poor credit mortgage loans. |
| 2. Be realistic about what you can pay for a | | | | 5. Carefully consider if you want an adjustable |
| deposit and each month before you decide on the | | | | rate or fixed rate first time home loan. Both have |
| home you want to buy. | | | | their own advantages and disadvantages. |
| 3. Carefully consider your future plans before you | | | | 6. It is important before you apply for a home |
| accept a first time homebuyer loan. Also check | | | | loan that you look at your debt to income ratio. |
| that the loan package terms will be convenient | | | | This means you need to look at account student |
| for you in the future. For example, you might be | | | | loans, credit card balances, car payments and |
| planning to raise a family which may affect your | | | | other regular expenditure figures. |
| saving funds. | | | | |