Essential things to know as a first time buyer

You will have a lot of queries in case if you are buying a home first time. Unless you don't get the answers for all your anxieties, you should not settle down for buying a house. Much before arranging finance, there are a lot of things that has to be taken into consideration like the location of the house, resale value of the house etc.

Other factors that First Time Home Buyer should consider are:

• Commuting time from your workplace

• Shopping complexes or schools

• Any development or proposed development

• Standard of living of the locality

• Value of the property

• Legal costs

• Possibility of renting

• Estate agents and home finders

• Home insurance

• Mortgage type and interest rates

• Repayment tenure and methods

First of all you should work out how much you can borrow. That basically depends on your earning potential and the deposit you put in. Accordingly you can choose the house and locality etc.

There are secured loans for home buyers which offers low rate of interest. Borrowers need to offer any property as collateral. There is apparent risk of repossession of borrower's property in case of payment default. Secured loans allows borrower to draw large amount with lower interest rates which makes this loan more popular among most of the First Time Home Buyer.

Bad credit also makes an impact on interest rates. Sometimes, lenders even refuse to approve a loan to bad creditors. Bad credit is established by County Court Judgements, credit card balance, defaults, arrears on payment, bankruptcy and late payment etc. it is always better to repair your credit report before applying for the loan.

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