First-Time buyers need help for mortgages
Buying your first home is an exciting prospect, but it can also be a challenging ordeal. We know many people are looking for guidance and support when stepping on to the property ladder. One of the most important pieces of advice for any first-time buyer is to focus on getting the best possible mortgage. You are buying a home, but in reality, you are applying for a mortgage and making a massive commitment to pay this mortgage back.
A sizable deposit is the platform for obtaining a suitable mortgage
It will go without saying for most first-time buyers, but the size of your deposit matters. The larger the deposit, the more likely it is you will be able to arrange an affordable mortgage. This is because you can receive a more competitive mortgage rate when you have a larger deposit.
You need to get a large enough mortgage to cover the cost of buying a home, but you also want to ensure the monthly payments are affordable. This may seem like a tough balancing act, but it is fundamental to your property buying ambitions.
You will also need to review your finances very carefully. Make sure you know what you can afford to pay each month. There is no point in considering houses or mortgages that are too expensive for you, you must ensure you find something which is in your budget, and which provides you with some leeway.
The mortgage lender will examine your outgoings as well as your income. What you spend on general living costs, travel, childcare, household bills, loan debts and credit card debt are all taken into consideration when applying for a mortgage.
Other fees to consider
You cannot just think about the cost of the mortgage in determining the cost of buying a home. In addition to your everyday expenses which will be considered as part of the application process, you must also consider some of the costs associated with a mortgage.
You need to have money that will allow you to conduct property searches, carry out surveys, pay the mortgage arrangement fees, pay solicitor fees, pay for stamp duty, manage home insurance costs and cover the cost of moving home. Buying a house is very expensive, and all these costs need to be met at the same time. Therefore, you must have leeway in your budget to ensure you can afford these services.
Your credit history matters
The mortgage lender will review your credit history. They do this to ensure you can be relied upon to pay back the loan, and this information, and the affordability assessment they carry out determines how much they are willing to loan to you.
You will find mortgage providers have a maximum LTV (Loan To Value) they are willing to offer an applicant. This is the maximum mortgage loan an applicant can receive, and it is expressed as a percentage of the property value.
Arranging a mortgage is a stressful activity, but it is extremely worthwhile if you move into the house of your dreams. First-time buyers should approach the mortgage application process methodically, as this will enhance your chances of submitting a suitable application.