The First Time Home Buyer
Some people wonder how a first time home buyer could easily get approval for a home mortgage compared to those who are applying for a second or third home. Well the truth is, banks and other lending companies prefer dealing with first time home buyers for they have a cleaner credit.
The first time home buyer usually does not have massive debts or have a chain of homes which they rent out or sell at a higher price. Those who are in the business of buying and selling homes usually have some credit issues whether or not they are good payers.
The government also supports first time home buyers giving them discounts and tax deductions. In the UK, the first time home buyer is urged to take out an eco-mortgage loan so they can either build greener homes or redo the existing house into an eco-friendly one.
So if you think that as a first time home buyer your chances are nil on approval, think again. You are a breath of fresh air to these lending institutions for they know that you are still that idealistic about buying a home and paying your monthly dues with dedication.
Also, they will look to you as someone who is serious about the mortgage because first time applicants usually want to impress their lending companies. With the good background behind them, and a good employment status, this will leave the lenders without doubt that you are going to be a good player.
However, make sure that you have at least 30% of the actual price before you plan to apply. Usually the banks will only grant a small portion of the actual price and expect you to pay for the down payment on your own. If you pay it, the chances of approval are 90% and above.