Houses are expensive and it’s important that you are able to work out how much you can spend on a new house without it impacting too much on other areas of your life. If you don’t already have a budget, sit down and get yourself a pen and paper. Make a list of all your monthly expenses including rent, vehicle costs, utility bills, credit card payments, groceries and so on.
After this you want to do the same with how much money you have coming into your home and your savings.
Doing this will give you an idea of how much money you can save each month and how long it will take you to come up with a deposit to put down on your first home.
Credit reports are used frequently by lenders. In general, people with high scores are usually seen as lower risk, and are therefore more likely to be granted credit with better rates. People with lower scores are seen as high risk and are less likely to be granted credit.
You want to get a copy of your credit report BEFORE you apply for your mortgage. This way, if your score comes back low you still have time to improve it.
Some ways to improve your credit score quickly include, getting yourself on the electoral roll and closing any old credit card accounts that you do not use anymore.
It’s important to remember that along with the huge deposit you need to pay for your mortgage, there are a load of other expenses involved when it comes to buying a home.
To be on the safe side it is better to note all these extra expenses down and then work them into your budget. This will help you budget more efficiently and potentially save you a lot of heartache later down the line.
Some extra expenses that you may have to pay could include survey costs, solicitor fee’s stamp duty and more.
Finding the right mortgage can be a daunting task. This is why it is important to consult a professional as oppose to venturing into the process alone.
Professionals know the their stuff so they can provide you with invaluable advice on how much you can borrow and they can also can help you pick the type of mortgage that suits you best.
A mortgage in principle can also be known as a decision in principle (DIP).
It is basically a certificate or statement from a lender to say that ‘in principle’ they would lend a certain amount to a particular prospective borrower or borrowers based on some basic information.
Homeowners often make the mistake of looking for a home first and then for a mortgage. Remember that lenders are not obliged to lend to everyone so getting a DIP before you look for a home will not only save you time but also make you come across as more professional and serious.
Your mortgage provider will do their own valuation of the property and check for any major problems and although it is tempting to go by their survey it is still highly recommended that you get your own survey done.
This will give you peace of mind because if a problem were to show up in the report you can get it sorted early and avoid a lot of stress later on.
Having to pay both the rent and a mortgage even if is only for a few months can take its toll on you financially very quickly.
Ensure that you do not put yourself in this situation by giving your notice to move in on time.
Getting home and buildings insurance for any home is important and is often a condition included in some lenders agreement. You never know when something could go wrong so it is always good to prepared.
You do not need to purchase it from the lender though, so shop around and try to find a good deal.