At the end of the day, the mortgage world can be a complicated place. There are so many factors to take into consideration that you can quickly feel like giving up.
Gain a better understanding of mortgage loans by reading our simple guide for first time buyers…
Before you even begin applying to different lenders, you should make use of a mortgage calculator with taxes to get a better idea of what to expect in terms of interest rates and repayment terms.
Because your credit report is such an important factor in whether or not a lender is willing to accept you as a customer, then you should request your own copy as soon as possible. Luckily, if there are any mistakes listed on your report then you can request to have them removed, and once successful your credit score should receive an immediate boost.
Don’t be in a rush
The simple fact of the matter is that right now may not be the best time to buy your first home. If you find yourself getting rejected by multiple lenders, then it might be a better idea to wait a year, work on improving your financial situation and then trying again.
One of the most important factors when applying for a mortgage is the size of the deposit you are able to offer. Many financial experts agree that if you can offer around 35% as a deposit, then you are giving yourself a great chance of being approved for a mortgage with the lowest interest rates.
If you can’t offer that much then don’t worry, as it is still possible to get a good deal when only offering 10% to 25% if you are prepared to shop around.
One of the major mistakes first time home buyers make is not paying attention to the extra costs which will be incurred when owning their own property.
For this reason, many people start struggling to keep up with the monthly repayments, as they have other costs such as repairs, maintenance, bills, and insurance to contend with.
Make no mistake about it, owning your home is a great experience once you are settled in and have your finances under control. Just be careful about taking on too much financial responsibility, as your dream home can quickly turn into a nightmare.