First time buyer mortgages: things you must understand

Taking out a mortgage? Then, read on and understand the process a bit more.

09:26 09 June 2013

People who are buying a house for the very first time usually find the process of taking out a mortgage confusing and overwhelming. They typically don’t know where to start or who to approach. If you’re one of them, you’ll be happy to know that the whole process is relatively simple.

 

The first thing that you need to do is to save for a deposit. Ideally you would want to pay more than 20per cent of the property price not only to lower your monthly payments, but also to increase your chances of getting your loan approved. 

 

Next step is to apply for a mortgage. You have several options when doing this as several banks and building societies are offering different mortgage packages designed for first-time buyers. You need to take the time to understand each option. 

 

Ask as much questions as possible to understand what is being offered to you and to easily identify the best deals available in the market. 

 

As this is probably one of the biggest financial decisions you’ll ever make, consider hiring a professional mortgage broker who can give you some tips and pointers. This could help you avoid committing any costly mistakes.