Buying your first home is not easy, especially when money is an issue and you are trying to keep within a certain budget. Luckily real estate rebates save you thousands, you just have to know what they are and how to get them. Here is some information provided from mortgage broker Charleston SC leading provider CharlestonMortgagePlace.com
Reports from the property market show first time buyers have increased in their age in recent years as the younger generation struggles getting a mortgage. Some first time buyers struggle to cover all the costs of buying, not anticipating the extra costs associated with closing on a house. The real estate rebates save you thousands, and it basically is an incentive by the realtor to work with them in exchange for a percentage of their commission. The rebate can be several thousand dollars depending on the house.
The market is responding to the needs of first time buyers and can offer special types of mortgage and extra support. If you mention to your lender or advisor that you are a first time buyer, they will offer advice specifically for your situation.
Finding 10% of your mortgage for the deposit is no easy feat. Younger people often don’t have the savings to put down a deposit, and have to borrow the money. There are 100% mortgages available for those unable to find the cash deposit, or mortgages where you provide just 5% of the total amount. Unfortunately many of these mortgages apply charges and have less flexible terms than other mortgages.
If your salary doesn’t qualify you to take out a large enough mortgage, you may want to look at guarantor mortgages. Basically, someone who is more financially secure will undersign your mortgage agreement, promising to honor the debt should you fail to meet repayments. This type of mortgage is often chosen by students, who either then pay “rent” to the guarantor, or pay the mortgage directly to the lender.
You may want to consider taking out a joint mortgage. This doesn’t just apply to couples – two or more people can enter a partnership and apply for a mortgage together. Normally a bank will pay up to 3.75 times the largest salary plus the amount of the second salary. If you choose to undertake a joint mortgage you should have a legal agreement with the person you are going into partnership with. All the terms should be clearly understood by all parties, and the paperwork should be processed by a solicitor.
Speak with the realtor before signing any documents pertaining to the real estate rebate, many do not participate in the program.