First Time Buyer Mortgage – Taking the Plunge

First Time Buyer Mortgage – Taking the Plunge

It’s time to grow up and become an adult. In today’s society, this often means buying a home. For most individuals starting out, a new home means getting a First Time Buyer mortgage. Is this the path that you should take?

You have to ask yourself why you are buying in the first place. Many people get into home ownership because of the tax advantages. This is not the best reason. The eventual cost of a mortgage far outweighs any benefits that may be gained from and current tax right-offs. In order to take the plunge, you really should have reasons beyond this.

It is worth a moment of your time to sit down and write out the reasons why you would want to buy a house. Do you need more space because of a growing family? Would your life be easier if you were closer to work? Knowing why you are doing something is as important as how you are going to do it.

If you know that you are ready to be a first time home owner, it’s time to look at the finances. The best advice I ever received was to only borrow 25% of the GROSS income of one spouse. This way, if a financial difficulty ever does come up, payments will not be a problem. Banks and lenders will always offer more money, even for a First Time Buyer Mortgage. Stick to your guns, and start small. You can always upgrade down the road.

When you look at the programs available, you will see that for First Time Buyer mortgages, it is possible to come to the closing table without any money. Many lenders offer a 100% loan where no down payment is required. Some will even roll in closing costs into the mortgage or the seller may pay the closing costs. Don’t be afraid to ask. What ever route you do take, keep in mind that in the end, the buyer will pay it all in the cost of the house.

Buying a new home can be overwhelming. With the options that are offered with First Time Buyer mortgages, the process can be less intimidating. The key to surviving is to take time to review all options, and sleep on any decision before making it final.


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