First Time Home Buyers – What To Expect

We all have a master plan of how we’d like out life to map out. And it normally looks something like this:

house buyer
house buyer

‘Go to school, pass exams, move into higher education, get a good job, meet the love of your life, get a mortgage, get married, have kids, go on two holidays a year, retire and live happily ever after’

However in the current economical climate it is clear that this idealistic future won’t happen for everyone. As taxes are rising, the cost of living has become more expensive and it is becoming more and more difficult to live comfortably in Britain.

The two most popular means of living in a home in Britain are renting a house from a landlord and buying your own house. There is also the possibility of renting a home which is owned by the local council. But because these council schemes work on priority the chances of finding a home via the council are very low meaning unless you fit these criteria it is almost impossible to get a house.

Renting a house privately can be expensive but this can depend where you live. For example, house prices in London will be considerably more than house prices in Manchester.

Over the years mortgages have become a hit and miss topic for most of us as it is getting increasingly harder to get onto the property ladder never mind climb the rungs. Deposit rates have increased over the past five years and as we have fallen into a double dip recession and current predictions say that it is only going to get worse.

Unlike our parents and generations before us we have become ‘Generation Rent’ as most of the population have resided in rented accommodation for most of their lives. Although this is a sad tale to tell, it is becoming increasingly difficult to get a mortgage on a property, even if it is part of our master plan.

The standard deposit for a 2 bedroom house is on average £8,000 and for most people that is a lot of money to save! With extra costs on top of this such as home insurance and council tax, if you step back and think – is it really worth buying? Your answer will most likely be no.

If you can find a good mortgage lender then by all means look into it further, however keep an open mind and research mortgage lenders/providers which suit your needs.

This blog was written by Sammy Green, who needed advice before settling on a mortgage deal. He used

How to Get Approved for First Time Home Buyer Loans

Getting ready to buy a new home

Buying a new home is a major decision in one’s life. The thrill and excitement of getting your very own house for the first time is immense. There is also the tremendous amount of joy associated with it all, mainly because buying a new home means that a long-cherished dream of yours is finally coming true.

home buyer
home buyer

Sometimes, the only obstacle that gets in the way of making this dream come true is the lack of adequate funds. This is where a home buyer loan can be a true lifesaver. With a home buyer loan, you can own and take possession of your home immediately, and then repay it gradually over the next few years.

The inside story of acquiring a home buyer loan

One of the biggest challenges of getting a home buyer loan is not so much in finding one as it is in getting the best interest rates. There is also the problem of getting your loan request approved. There are many factors that can influence this, such as

  • your credit history,
  • the presence of a security (usually the home itself),
  • your current employment status,
  • your monthly income, and so on.

With the generally lenient terms offered by most lenders today, it is not hard to get a loan to finance your new home provided you have a good standing with respect to the factors above.

The easy way to find the best rates

One of the quickest and easiest ways to find a lender who is willing to provide you with a home buyer loan at the rates and terms you like, is to look online. With specialised loan-finder services like, it takes just a few simple clicks of your mouse to make a quick survey of nationwide lenders and pick the best one from among them. In most cases, the service is free and there is no obligation.

With different lenders offering different terms and rates, it is always advisable to compare a handful of potential lenders and then zero in on the one providing the best loan to cater to your specific needs. Be careful though of making sure that you’d be able to repay the loan on time and the interest rates are not too high. You also need to make sure that you’ve read all the fine print so that you face no unpleasant surprises later on.

The good news is, getting a low or competitive interest rate on your loan is not very difficult. If you have a good credit history, you stand to receive very attractive interest rates. And even if you don’t have such a perfect credit history, you can still manage to get some pretty decent rates by virtue of your current employment status, your current age, your health and such other factors.

So apply today and get ready to make your dream of owning a home come true.

Real Estate Investment Options for First Time Home Buyers

A real estate investment isn’t likely to make you super rich very quick. However, if you’re willing to work hard and if you approach the investment in a responsible manner, then it can definitely help you become wealthy. If you are a first time homebuyer, then you are sure to benefit from the following tips on how to make a good real estate purchase and manage your investment so as to reap your just rewards.

choose new home
choose new home

Your Options

Among the more popular options for a first time homebuyer is to invest in REITs (real estate investment trust) instead of an actual house. This option saves you from having to deal with the common risks involved in real estate investment. At the same time, it helps you become familiar with how the real estate industry works, thus preparing you for the time when you’ll finally be ready to purchase property. With a REIT, you will have a small ownership in real estate properties like malls and hotels.

Another option is that you might consider buying property, renovate it, and then sell it for profit. Additionally, you could choose to buy property, spruce it up and then put it up for rent. The property in this case may be an apartment building, a single-family home, or a commercial edifice. With the rental setup, you’re responsible for all the costs of property maintenance, including mortgage and taxes. You will therefore need to be patient, as you’re likely to earn a considerable profit only when mortgage has been paid in full.

What to Consider

Among the first things you need to consider if you’re a first time homebuyer is your own expertise. For example, if you’re a contractor, then renovating properties and selling them for profit will most likely be easy enough for you. If your expertise is on the management side, then becoming a landlord may suit you better. If you don’t have management skills, you might consider hiring a property manager. In this case, however, you’ll have to take the size of your property into serious consideration. If you only have a modestly-sized property, it may not really be cost-effective to hire a manager. You may have to get a crash course in property management.

There are plenty of other options you can consider when you decide to get into the real estate business. As with any other business opportunity, real estate holds a lot of potential, but it also comes with its own set of risks. Never make the mistake of thinking you can jump right into real estate investment and expect your wealth to shoot sky-high overnight. You need to weigh your options and make your decisions very carefully to increase your chances for success. As a first time home buyer, you would do well to seek the advice of a real estate professional in your area. You will need help in locating and evaluating properties at the outset until you gain confidence in your own real estate investment skills.

Author Bio:

Helen Prasad is the Co-Founder/Business Development Manager at In her opinion, great investment advice can play an important factor in our everyday stressful lives, so people need to be more aware and detail-oriented. You can stay in touch with her on Twitter as well.



Tips For First Time Home Buyers

Purchasing a home for the first time can be a little intimidating. You want to make sure that you do everything correctly; however, since it is your first experience in purchasing a home, you are not sure if you are missing any steps.

first time home buyers

Thankfully, following a few easy steps before and during your real estate transaction will allow the process to go smoothly.

Before You Find A Real Estate Agent

• Make a list of all the attributes you want in a home. Include any amenities that you cannot live without, and a list of those you can. Knowing exactly what you want will allow you to find the perfect home.

• Get prequalified for a mortgage. When you are prequalified for a mortgage you know exactly what price range to search when you are looking for a home. This will also allow you to appear as a more serious buyer when you place a bid on a home.

• Know your finances. Go over your bills and your budget. Make sure that you can easily afford a down payment and the monthly mortgage.

Looking For An Agent

• When you are searching for an agent, look for one that works in the area that you are searching for a home. While many agents can go out of area, someone that is more familiar with the area they are working will provide valuable information while you are searching for a home.

• Use social media to find a reputable agent. Ask for recommendations from family and friends to find a realtor. Good experiences by other people will most often lead to a good experience for you.

• Personality. Once you meet your agent, make sure that you get along. While it is not necessary to become lifelong friends, you want to make sure that you will be able to interact with the agent on a comfortable level. If you and your agent do not see eye-to-eye, it will make the entire buying process a nightmare.

Finding A Home

• Once you have found a home that you wish to purchase, ask for a home inspection. Home inspections will reveal any problems with the home that may not be apparent to the naked eye. Many inspectors will check the roof, plumbing, and look for damage from insects.

• Research the area. Your agent may be prevented under state law from disclosing certain information to you about the area you are interested in purchasing a home. Take some time to look into school information and crime rates and determine if they are suitable to your needs.

• Complete a walk-through before signing the final paperwork. You should always complete a walk-through to verify that there has not been any damage to the property since your first visit. You should also check to make sure that light fixtures, air conditioning, faucets and drains are still working. Look for any stains on the carpeting or flooring, as well as any cracked tiles. If there is damage, you can request that repairs are made prior to the final paperwork being completed.

Written on behalf of Dean Birks, a leader in Prince George Real Estate.

My First Home Scheme FAQ

Referring to below frequent asked questions if you are confuse about My First Home Scheme.

my first home scheme

1. What is My First Home Scheme (Skim Rumah Pertamaku [SRP]) all about?

My First Home Scheme is among the list of measures lately introduced by the Malaysia Government in year 2011 Budget targeted in helping young people who monthly incomes are of RM3,000 or less to be able to buy a house. My First Home Scheme enables home buyers to get as much as 100% loans from banking institutions, allowing these people to own a house.

With the help of Cagamas SRP Berhad, they are going to guarantee the banks on financing above 90% of the total loan. For example, if a borrower gets 100% financing, Cagamas SRP is going to guarantee 10% ( from90% to 100%) of the loan.

2. Does this means that borrowers under My First Home Scheme are only liable to the financial institution for 90% financing with the guarantee from Cagamas SRP Berhad?

No, once the loans are granted, the borrowers are liable full financing amount (up to 100%) to the financial institution. The guarantee only indemnifies the financial institution for any loss incurred resulting from loans over 90% level.

3. As a borrower, will I need to pay a higher interest or any fee to entitle for up to 100% loan under this My First Home Scheme?

No, the normal interest rate or profit rates of different banks should be applied and borrowers are not required to pay for anything for the guarantee from Cagamas SRP Berhad.

4. Who is qualify for My First Home Scheme?

The scheme is open up for all citizen of Malaysian with aged 35 years old or below with the earning that is not over RM3,000 per month.

5. I’m self employed and my spouse monthly income is RM2,000. Are we qualify for joint applicants under the Scheme?

No, all applicants (joint applicants are included) need to meet the citizenship, age, employment, income and first home criteria.

6. Me and my spouse having income of RM1,500 per month each one. We want to get 100% financing for buying our first home that valued at RM220,000. Are we eligible for the scheme?

Under the Scheme, the financing repayment amount per month can’t be more than one third of borrower’s monthly combined earning; in this case, RM1,000 per month as the financing is taking affordability under consideration.

How it calculates:

Gross combined earning : RM1,500 + RM1,500= RM3,000
1/3 of RM3,000 = RM1,000

According to existing interest rates and granted maximum 30 years of financing tenure, the maximum loan amount that you are qualify is about RM200,000. To get this RM220,000 loan, your combined monthly earning must be somewhere around RM3,300.

7. Me and my friend meet all the criteria. Can I join with my friend to apply loan under My First Home Scheme?

No, joint applicants only apply to family members or next of kin. For example husband and wife or siblings only who are meet all the stipulated criteria.

8. Is the Scheme only cover completed properties or even properties that are under construction?

Yes, My First Home Scheme is covers both under construction and completed properties. The guarantee is take effect once full disbursement of the loan.

9. Me and my spouse purchased a house for RM220,000. Are we eligible for RM220,000 loan in case we meet the income criteria?

Valuation of the property is subject to the underwriting policy of the bank. Commonly, banks will issue the loan that are of the property buying price or valuation (open market value) from bank’s panel valuer. Which ever is lower come first.

10. My current loan was taken up for buying my first home. Can I refinance the loan under the Scheme?

Of course no. My First Home Scheme is not applicable for refinancing of any existing loan.

11. Is there any limitation on locations or residential properties types under the Scheme?

This is going to depends on the underwriting policies of respective bank for the type of residential properties and locations limitation if any.

12. How do I apply for financing under the Scheme?

Malaysia government had appointed below financial institutions to assist with My First Home Programme which are as follow:

1. Affin Bank Bhd
2. Affin Islamic Bank Bhd
3. Alliance Bank Malaysia Bhd
4. Alliance Islamic Bank Malaysia Bhd
5. AmBank Bhd
6. AmIslamic Bank Bhd
7. Bank Islam Malaysia Bhd
8. Bank Muamalat Malaysia Bhd
9. CIMB Bank Bhd
10. CIMB Islamic Bank Bhd
11. EON Bank Bhd
12. EONCAP Islamic Bank Bhd
13. Hong Leong Bank Bhd
14. Hong Leong Islamic Bank Bhd.
15. Maybank Bhd
16. Maybank Islamic Bank Bhd
17. OCBC Bank Malaysia Bhd
18. OCBC Al Amin Bhd
19. Public Bank Bhd
20. Public Islamic Bank Bhd
21. RHB Bank Bhd
22. RHB Islamic Bank Bhd
23. United Overseas Bank Malaysia Bhd
24. Standard Chartered Bank Malaysia Bhd
25. Standard Chartered Saadiq Bhd
26. Cagamas Bhd.

13. Can I go to apply for Islamic financing under the Scheme?

Yes, the scheme is covers both conventional as well as Islamic loan financing.

14. What is the maximum tenure of the loan?

The maximum tenure of the loan is up to 30 years but is subject to underwriting policies of respective financial institutions.

15. Should I buy fire insurance, Takaful, Mortgage Reducing Term Assurance (MRTA), or Mortgage Reducing Term Takaful (MRTT) ?

All borrowers are required to buy fire insurance or Takaful. But for MRTA or MRTT, it will depends on the underwriting policies of respective bank.

16. It is mean that I don’t have to pay any down payment if I go with 100% financing under the Scheme?

my first home scheme 2

The home buyer will have to pay for a booking fee and/or deposit to the home seller under the Sale and Purchase Agreement terms awaiting disbursement of the housing loan by the financial institution. Once all the required loan documentation been received and processed, the home buyer will be reimbursed from the disbursement from financial institution of the loan. The home buyer may then can arrange with the home seller for deferment of deposit payment while waiting for disbursement from the financial institution. However, this arrangement will need to depend on the willingness of home seller whether they want to go for such accommodation or not.

* Note: The My First Home Scheme FAQ tend to be for illustration only. We( are not going to liable for any damages or losses result by it. Those interest applicant may well approach to the appointed financial institutions for better understanding of their terms and conditions. Hope you are getting success to purchase your first dream home with My First Home Scheme.