Applying for your first mortgage can be daunting!! There are all sorts of acronyms and terminologies, not to mention all the lending requirements to get your head around. If you’ve not had a lot of exposure within the finance industry and can all seem a little confusing.
Below is a quick list you should consider when making that first step into the world of home ownership.
1. Spread your risk! Make sure you have the greater amount of your mortgage on a fixed term. You are not going to be able to pay your mortgage back in the first few years so in the interim fix it at a lower rate rather than floating at a higher rate.
2. Figure out what you can afford to repay and stick to that budget. Owning your own property comes with a lot of unexpected costs which can put a squeeze on finances.
3. Keep your credit history clean. If you have filed for bankruptcy this will stop you from getting that first mortgage.
4. Avoid taking out additional lines of credit such as car loans, credit cards and personal loans.
5. Employment stability, make sure you have demonstrated to a lender that you can meet your required monthly payments. It’s no good floating job to job, lenders like to be repaid on time.
6. Operate a clean bank account. This means keeping your account out of overdraft and putting money into a savings account on a regular basis. Make sure you pay that credit card off too.
7. Shop around. This can be time consuming so use a mortgage broker as their services are usually free.
8. Lenders love income protection insurance or mortgage protection insurance. This ensures they will get paid in the even t that something unexpected occurs to you.
There you have it, 8 pieces of the best advice on the market, (well 8 pieces of the best advice I could think of). Hopefully you’ll be able to apply some of my helpful tips to your own situation and be in a stronger position when you start your search for your first home.
I wish you all the best with your ventures in the property market.