First Home Loans: Three Easy Steps to Securing Your First Home

By: Bruce Owens

There is truly no place like home. A place to call your own, invite friends over, and just feel that you've finally made it! But where does one even begin to end up in the place where the keys have been placed in your hands, keys that will open the door to your own home?

Buying your first home and shopping around for lenders that finance first home loans are steps that can be very intimidating top first time buyers, but they do not need to be. All great things to come begin with a first step. And that steps leads to the next, and then to the destination. So buckle up for a few minutes and lets take a journey toward getting a first home loan to become a property owner at the end of the trip.

Here we go.....

First Step:

The most important information you want to be attuned to, is that you want to buy a house at the best price possible. Your income going out toward the payment of your house on a monthly basis needs to be affordable to your lifestyle, and with a home investment you want your property to increase in value over time. To achieve these goals, it is important to look at the housing market first. What are you looking for in a housing market? Well, you want to evaluate whether it is a buyer's, seller's, or balanced housing market.

Second Step:

Here you want to take a look at three factors that will help you to decide what home you would like to purchase. The factors are: location, style, and cost. It is important to go over these factors before you begin house hunting.

So, where would you like to live? Do you have children and want to live in a family oriented neighbourhood close to parks and schools? Or will your location decision be based on your employment and you want to live close to your job? How many bedrooms and bathrooms will you require? Do you need a big yard, a pool, privacy fencing or hedging? What kind of community will you be moving into? Is a quiet, safe, close to schools, shopping and transportation?

What kind of style of home are you looking for? Are you looking for a condominium, a new or resale home? When looking in a particular neighbourhood, be vigilant upon raised or fallen prices, as well as land that may be used for new developments.

And lastly the style of home you are looking for will lead into costs. And there are always pro's and con's for each one.

Third Step:

How much can you afford? Firstly look at your gross annual household income. Multiply by 32% to determine how much of your income will go to household expenses. In most instances, you will need a down payment of 5-25%. Also, research extra costs and closing additional costs.

Last Step: Your First Home Loan!

Now it is time to make the first contact with a mortgage broker. You can go through your own bank if you prefer however, broker rates are less costly and they have access to mortgages that are available from a wide array of lenders, so they are the best of the best. Additionally, an experienced mortgage broker will be able to assist you and provide valuable insights in assessing how much and what kind of a mortgage is best for your individual circumstances.

Once you find a broker you want to work with, you need to fill out an application that will begin the process of going through a credit check, and your income. That process will paint a better picture of what you are able to afford, and the loan interest and hold rate. Now you have arrived at how to begin your first home loan, and the next journey of purchasing a home awaits you.

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