Should you be planning on purchasing your own home, you will be all too aware of the problems and pitfalls that come with this arduous process. While it is difficult now, it will be beneficial in the long term.
Are you aware of government incentives that have recently been implemented to assist first time buyers?
Due to the current economic climate, and the ongoing problems with the housing market, the government has launched a number of schemes and incentives to help first time buyers buy their own property. Getting on the property ladder has become increasingly difficult in recent times, and as such, more and more people have been renting properties. With more people renting properties, this has lead to severe housing shortages resulting in a lack of rental accommodation and social housing. The housing crisis prompted the government to take measures to incentivise the buying of property.
While obtaining government incentives are seemingly difficult, it is important that you seek the correct advice before purchasing your first home. You may be entitled to government approved scheme, which can lessen the financial burden of buying a property. Contact the Homestart Regional Centre for more information on government incentives.
There are some things that you need to know about government incentives: they are only available to first time buyers. What is more, you will need a minimum of a 5% deposit to secure your property and subsequent mortgage and to ensure that you can receive financial help from the government. While the thought of saving a deposit of 5% can be daunting, particularly with today’s house prices and the high cost of living, you do need to prove to your mortgage lender that you are a viable candidate for a loan. By saving a deposit, you are proving to your potential lender that you are financially stable.
Should you have a small deposit, then these government incentives are perfect for you. They are chiefly aimed at individuals that have small deposits. Saving for your deposit can be difficult, but should you not be able to raise a sizeable amount of money, be rest assured that financial assistance is available.
Government incentives for first time buyers are proving to be very successful. Increasingly, more people are purchasing their own homes, which is positive for both the economy and individuals who are desperate to get on the property ladder.
While your financial affairs will still be subjected to intense scrutiny by your mortgage provider, you can be rest assured that government backed schemes are available to support you. Do bear in mind that you need to ensure that your finances are in order prior to applying for a mortgage. If you have a history of bad credit or overspending, this may result in your mortgage application being rejected. It may be advisable to obtain a credit report so that you can analyse your current financial situation.
Should you have a fantastic credit history, then obtaining a mortgage should not be problematic. What is more, you may be eligible for first time buyer incentives. However, should your credit history be less than appealing, now is the time to correct your previous misgivings. Ensure that you rectify any mistakes on your credit report so that this does not negatively impact you. Furthermore, you must endeavour to pay your bills on time. This will help you manage your finances in a more robust way. While your credit report may be poor now, you can take positive steps to correct this.
While all of this sounds appealing, do bear in mind that you may not be entitled to these government cash incentives. Ensure that you have a backup plan when applying for a home loan.
Furthermore, the government backed schemes have been met with criticism. Some have suggested that giving people money to buy a home is counterproductive, when faced with a housing crisis. What is more, they have suggested that building social housing would be a more effective solution to the ongoing housing issues. Regardless of the criticism aimed at these schemes, they are proving to be very successful. This means that more people are in the fantastic position of purchasing a property. A few years ago, this would have seemed like a pipe dream. Now, people are making their dreams come true by buying houses.
As with any significant investment, or purchase, it is imperative that you seek the advice of an independent financial advisor. Naturally, your mortgage lender is going to tell you the positive aspects of buying your first home. They will not advise you of the pitfalls as they will make a substantial loss. Seeking independent advice means that you are getting a well balanced, and well-rounded, view of the benefits and hindrances to purchasing a property. An impartial financial service will not give you the ‘sales pitch’ and they will answer all of your questions honestly. Furthermore, it is highly advisable that you conduct thorough research to ensure that you are getting the best deal possible. A mortgage is a huge commitment and as such will cost you a lot of money. Researching your available options will put you in good stead before you embark on this enormous financial commitment.
Before you seek the advice of mortgage advisors and financial services, it is imperative that you are aware of the options available to you. There are a plethora of mortgages available, so ensure that you seek guidance on all your available options. Don’t just opt for the first mortgage that is shown to you, conduct thorough research and ask questions if you don’t understand certain aspects of the mortgage. The key is to break down the jargon and ensure that you are aware of all your options.
Purchasing your first home is akin to taking a leap into the unknown. You will be baffled by the plethora of information that is given to you so do not be afraid to ask questions. Enlist the help of a reputable, and independent, financial institution so that you have a clear perspective of your home loan. What is more, ensure that you apply for government assistance, as this may the financial strains that you are possibly facing.
Purchasing your first property is exciting, but making sure that you have all the facts is crucial to you making the right decision.