Top Mortgage Tips For First Time Home Buyers
Buying a property for the first time can be exciting. Yet with lots of mortgage jargon, it can soon start to feel like a mortgage minefield. If you’re looking to get onto the property ladder, here is a guide to the mortgage process.
Can I Realistically Afford A Mortgage?
Although there are a number of advantages to buying compared to renting it’s important not to rush into buying a property as the costs of owning can soon mount up. You will have to account for extra costs such as mortgage arrangement fees, legal and home maintenance costs.
On average the lender will lend around 3.5 times your total household income. The lender will also take into account any debts or credit commitments you have and minus this from your overall income.
The monthly mortgage payment you make will vary depending on the deposit you put down and the type of loan you choose. Generally the bigger the deposit, the less you’ll pay monthly. In most cases lenders require you to put down 5% to 20% of the house value.
Finding A Home
You need to ask a few questions before you make such a big investment. Buying a property means you’re in for the long haul. Do you see yourself living there for years to come? When you’ve decided on a home it’s important to view it at different times of the day. Whilst it may look peaceful at 11 am, rush hour can be a different story. There is a common saying – “its best to buy the worst house on the best street than the best house on the worst street”. When it comes to buying a property location is key!
Which Mortgage Should I Go For?
Shop around for your mortgage to make sure you get the best deal for you, rather than just getting a loan with someone you already bank with. There are a vast range of mortgages on the market. If you are unsure which to go for, it’s probably best to speak to a mortgage advisor. A mortgage advisor will be able to source mortgages from all the lenders and find the perfect loan for your needs.
Making An Offer
Once you’ve found the right property and mortgage for you, you can put in an offer for the house. However you may be able to negotiate. Find out what other properties in the area are worth. As a first time buyer you’ll be more appealing to a seller as there is no chain, so you can complete on your offer straight away.
Getting Your Loan Approved
The lender will carry out an inspection on the property to ensure there are no major faults. This is to ensure that the loan is suitably secured against a decent property that could be resold if repayments aren’t met and repossession occurs. After your eligibility has been assessed and everything has been approved, you’ll get the formal loan offer. Once you complete the offer you can finally get the keys!
This article was brought to you by Access Mortgage Solutions who can source a mortgage for all requirements, including those who need to get a mortgage if self employed.
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