Buying your first home is exciting – It is the place you call it as a home, you’ll start a new life. It is a big deal, so why should it be daunting and stressful? Well, it is so understandable!
What defines you as a First Time buyer?
To qualify as a first-time buyer you should never acquire a major interest in a residential property or an equivalent interest in land situated anywhere in the world. So what matters you as a first-time buyer? Because first-time buyers are now eligible for certain schemes, and these benefits will make a huge change in the difference of the costs you will be facing while buying a home. In that case who really doesn’t want to avail these benefits?
- You will not qualify as a first-time buyer if:
- You previously inherited any property or given property as a gift
- You previously acquired any property from any financial institution or under any financial scheme
- You have added your name to the title of someone else purchase
Taking out your first Mortgage Loan:
Building your first home or buying your first property is the most expensive purchase or a task that you will ever make. But people do this all the time or even once in their life. Will that be easy for everyone? Not exactly it was the tough task to face all the financial struggles at a time. Relax there is a solution, Go for a mortgage loan.
A mortgage loan is a big loan, where you borrow money from a lender to build a house or to buy a property. Eventually, you will pay back the money with a certain sum of interest within the estimated time limit. But the thing is, getting instant mortgage approval is impossible unless you will find a well knowledgeable and experienced mortgage broker. In that case, they can understand you the best to decrease your dauntfulness and stress in dealing with your dream home!
Monthly Payments and Interests:
Paying your monthly mortgage installment is not much different from paying your house rent every month, whereas your mortgage installment consists of a sum of interest that you will be paying to your money lender. The amount of interest you pay is calculated by applying your interest rate, generally expressed as a percentage to your outstanding loan amount. You can pay your interest amount alongside your capital payment. However, your total monthly payments include your capital payment towards the mortgage balance, so each month your mortgage balance/overall debt reduces.
Term of Deposits for first time Buyer:
If you take out a mortgage loan, then start to save up for a monthly deposit. Your deposit amount determines the term of your repayment and your total annual payment. Generally, first-time buyer deposits rates from 5%-15% of the total market value or even more on that. Larger deposits generally give you more competitive mortgage rates.