First Time Homebuyer Mortgages

Current mortgages available to a first time homebuyer with good credit

As a first-time buyer, it can be very hard to know where to start looking.  Everywhere you turn, you can see houses, but there doesn’t seem to be a single one out there that is right for you or in the right area or within the right budget.  Then, miracle of miracles, your dream house lands in front of you like a match made in real estate heaven.  Now all you need to do is lay down the dollars, right? 

Unfortunately, the first step of the mortgaging process is sometimes the most difficult – let’s not even get into the horror of repayments and defaults and foreclosures and short sales and – well, that’s a tangent.  Give your head a little shake, because while it would be super nice for first home buyers to be able to enjoy every easy step of their very first home buying and mortgaging experience, you are immediately stacked into a category by every real estate agent that you meet;  either well qualified for a home mortgage, or not so well qualified. 

The basis for this decision will be around any credit history that you’ve got – from renting property and credit cards or personal loans – and the guess on the part of the lender as to your capability as a borrower to repay the loan and the interest in the monthly stipends.  Regardless of your age and income, a good credit history will mean that you will be far more likely to be approved for your mortgage, and you will also have more options.  A poor credit history can result in higher interest rates, shorter terms and larger deposit requirements.

Home ownership has many benefits, however, and so we will assume for the moment that you are a first-home buyer with a good credit history.  Mortgage options for good creditors are specially formulated loans to offer benefits such as low interest and no-deposit or deferred deposit payments.  Obviously, as someone with a good credit history, you have the added benefit of being able to shop around for different lenders, all of whom will be fighting for your business.

There are also special options available for all persons who are seeking mortgage loans, such as a guaranteed loan with a 20% deposit on the house.  First-home buyers are encouraged by government schemes to seek out loan guarantees or small down payment options, as these schemes will protect and cover you if you default.  Such options are also available to low-income earners, where financial hardship can be proved. 

Whatever option you decide to go with for buying and mortgaging your first home, remember that you can refinance the mortgage later, when you have built up a solid credit history and rapport with your lender.  Just make sure that these pathways are permitted by your initial mortgage contract and be sure to discuss any specific needs or questions with your lender.