Simple Steps To Purchase Your First Home

by Meagan Smith on April 4, 2012

Now that you have found your dream home your next step is learning how to finance it. If you have never bought a home then a mortgage may sound complicated. It does require a little of knowledge in order to avoid paying more than what you should pay. The very first thing you will need is a down payment. The down payment is usually 20%-30% of the loan value and it is require to qualify for a mortgage loan.

Note that you must pay out of your pocket at least 20% of property value. Also an additional 10% for expenses (notary, agency, land Registry and valuation). Before you continue on your quest, make sure you meet the conditions to qualify for a mortgage. Broadly speaking, the monthly mortgage must not exceed 35% of your monthly income. You must also demonstrate some job security, among other requirements.

Take your time and evaluate each option carefully. Pick a mortgage loan that fits your situation and does not affect heavily your lifestyle. Ask questions and learn about each mortgage option available. Ask for a personalized comparison of each mortgage option. Try to find one that fits your current financial situation and remember to check the interests rates of each mortgage plan.

You probably seen many mortgage loans being advertise with low interest rates. Even though they might look attractive, they usually come with a catch. As a result you must always make sure your mortgage does not come with any derivatives. Lately some people had problems with those. It is important you negotiate all the fees with the bank in the beginning, this way you can avoid nasty surprises later.

These committees are important if you want to switch banks in the future. You must enter the loan with a good credit and record. But you must also know how to safely get out of it without affecting your credit. You can ask for flexibility options for times when your economic situations are not great. Flexibility options are available both in the beginning and over the lifespan of your mortgage loan.

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