First-Time Buyers: Tips for Getting a Mortgage
Are you looking to get on the property ladder and become a homeowner? Now is a great time to invest in property and move into a new home. But, if you are a first-time buyer, this can be more difficult for you. You are going to have to work hard to get a good mortgage. Here are some tips that are going to help you get on the property ladder and secure a mortgage.
Get Professional Advice
First of all, one of the best ways you can secure a mortgage is by getting professional advice. As a first-time buyer, you are not going to know what to expect or the process of securing a mortgage. It is best to get advice and assistance from an expert that knows how the system works. This is going to ensure you have access to the best products that are going to suit your finances. For example, you can contact Ross and Partners to enjoy financial services, which includes mortgage advice. This is going to allow you to relax and know that an expert will be able to find a mortgage to suit your circumstances.
Have a Settled Career
Are you planning to get a new job soon? Are you settled in your career? You need to ask yourself these questions before you start looking for a mortgage. It is important to remember that mortgage lenders are looking for financial stability. They want someone that is going to be able to pay their instalments each month without any problems. If you are someone that is moving from job to job every six months to one year, this is not going to look good. Wait until you are settled so that you can secure a good mortgage. If you are self-employed, you will have to have several years of self-assessment returns before applying too.
Watch Your Credit Score
Your credit score is very important when it comes to getting a mortgage. For a lot of lenders, this is what is going to act as evidence when it comes to payment your mortgage repayments. It is proof that you can handle your financial responsibilities and a good score means that a lender will trust you.
Remember that your credit score is a reflection of your borrowing so far. So, you want to make sure that you are paying all of your bills on time and doing everything you can to have a good credit score. If you no longer use credit cards, you can close them down. In addition, signing up to vote and being on the electoral register can help to improve your credit score. You can check what it is online and see if there is any way to improve it. Normally, this includes not applying for more credit if it is not necessary. When companies run checks on your credit score, these hard checks can bring it down. This is something that you do not want to happen.
Save for a Good Deposit
Every first-time buyer is going to benefit from saving. You want to spend several years cutting down on your spending so that you can save up for a good deposit. This is going to allow you to purchase the house of your dreams. While your mortgage is going to cover the majority of the property price, you will be required to make a deposit. Indeed, if you are purchasing a home that is slightly out of your price range, you may have to make up the difference with your mortgage and make quite a large deposit. Thus, you want to focus on saving for a while so that you can get a house you really want and are going to be happy with.
Buy with Someone
It is not always going to be possible to buy with another person and it will depend on your own circumstances. But, if you can buy with a friend or partner, you can be in with a better chance of getting a mortgage. This is because there are going to be two incomes that will contribute to a better loan. This can mean that you can borrow more. Just make sure that you are aware that this is a big responsibility and you are both going to have a duty to pay back the mortgage. Ensure that you discuss this option at length in order to make sure you are making the best decision for both of your financial situations.