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					                                    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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