TIPS FOR FIRST TIME BUYERS The Government’s First Home Owners Grants are a great boost for first time buyers. There some hurdles still remaining. Consider the following: Consider the following: 1. Your credit. Poor credit will make you a much larger risk in lender eyes and a larger risk means higher interest rates and higher monthly mortgage costs. Make a point of paying your credit card payments, car loans, rent, and other payments on time, all the time, and in full. In addition keep your credit card balances low. Higher balances mean higher risk in the eyes of the lender. 2. Taxes and Insurance. Keep in mind that in addition to your mortgage payment you will have to pay taxes and insurance. Sometimes this is not included in your mortgage payment and can be quite a shocker when you see how much it increases your total monthly payment. 3. Consider what location will work best for you. Look at your needs, the needs of household members, and your preferences in terms of commuting, shopping, recreation, and other factors that are important to you. Location remains the critical factor in the long term capital appreciation of your property. 4. Plan on getting a home inspection as part of any offer you make. A professional inspection can help you understand the condition of the property and any potential hidden defects. It’s a small investment but well worth the cost. 5. Talk to a Lender. Get pre-approved by a lender so that you know how much you can borrow and what you can afford. There is a big difference between pre-qualification and pre-approval. Ask your Lender about the difference. 6. What type of loan is best -- consider all options including standard variable and fixed. 7. Consider the risks. Given the most recent history of interest rate markets, consider the risks of interest rates rising and this will impact on your repayments and your affordability. Always leave a buffer for interest rate rises. 8. The time is now! Start the search process now. Talk with an agent and start looking at homes. Make a point to search the Internet on a daily basis. There has never been a better time to be a buyer than right now. There is plenty of inventory to choose from and plenty of deals to be had!
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