Are You A First Time Home Buyer?

If you are a first time home buyer, know that your chances of getting approval from the lending company are a high one. In fact, first time home buyers are considered as better chances compared to those who have been in the business of buying homes. Here are some factors to consider if you are thinking of buying a home for the first time.

Find the property that you want to buy. See if it is in a location that would have the potential in the future, not a dead end. Remember, properties are assets which you can sell in cases of financial constraints. If the property is in a good location it would sell faster.
Find out how much is the selling price and calculate if you can afford the minimum down payment which you would have to pay on your own, without help from a lender.
If you find the property that you like to invest in, take pictures of it, get the documents that support it, make sure it is clear of any tax encumbrances and such, the floor plans, etc. these documents will be needed by the lenders when you apply for the loan mortgage.
Do not just go to the first lending institution and apply. Every application includes a certain fee to be paid. So before you spend for a non-refundable process fee, shop around for other lenders and study their packages. Look at interest rates, some are higher than others. Look at the credibility of the company. Usually banks that offer home loan mortgages are a good choice, but then again, it depends on the bank.
How much are you willing to pay every month for the next thirty years? If you have a stable income, then it would be easier to calculate how much you are willing to set aside every month to pay for the amortizations.
Read the contract and look for any hidden costs. If you don't understand contracts and legal words, consult a lawyer's help.

When you finally get approval, you will still have to shell out money to close the deal and other legal fees. These fees are not deductible from the amount loanable. Just like the down payment, this is a cost you have to shoulder on your own.

After all that, you will now have your own home, congratulations!