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First Time Buyer Tips The first thing you need to determine is how much you can afford to spend on your property. One mistake first time buyers make is to go around looking at properties, finding their dream home, and then realizing that they cannot come even close to affording it. This wastes time and can cause real disappointment.

Instead, use your valuable time wisely by working out how much you can afford. Most lenders will allow you to borrow around three times your annual household income, perhaps a little more in some cases. However, you also need to take into account any debts, as these will impact on the amount you can borrow.

The wisest thing to do is get an idea of how much you can borrow based on income and debt levels by going to a professional. This will allow you get a more accurate idea of how much you can afford to spend on your property, enabling you to look at potential homes that are within your price range. This can save you a great deal of time and disappointment.

Another thing for first time buyers to consider are outgoings that must be worked into the monthly budget. If you have never lived independently before, you may not be aware of how much running a home can cost. You should look into the monthly costs for services such as utilities, and also take into account monthly costs for groceries, car running costs, and other necessary monthly payments. This is in addition to any ongoing commitments you have, such as credit cards, loans, insurance premiums etc.

Other considerations include down payments and money to actually set up your new home. The down payment required will depend on the lender you go through, but there are some good deals available for first time buyers.

If you decide that you can afford to take out a mortgage, and you are happy with the amount that you can borrow, you then need to determine what type of mortgage you want to take out. You can talk this through with your lender, but you should base it on your income, your expected future income, and your own personal preference. If you are nervous about rising repayments, then you can opt for a fixed rate mortgage. However, if you have the capacity to increase payments should the interest rate rise, you can opt for an adjustable rate mortgage.

Your best option could be to contact a mortgage company to get you started.

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