First-Time Buying: The Essential Tips

28 May

First-time buyers have always had to struggle to get on the property ladder. It can be quite a difficult and complicated process to go through. Since the recession, individuals who want first-time buyer mortgages have found it very hard to get a deal that is cost effective. Therefore, many buyers need professional advice to gain the optimum price they want.

Preparing for the Process

The process of getting a mortgage can be quite an arduous one. Usually the aspects that take the longest are the most mundane ones. Processing documents shouldn’t be overly complicated, but it turns out to be ones of the most frustrating parts of getting a mortgage. This is why first-time buyers should prepare for this well in advance. As a person in this situation, you should make sure your documentation is organised. Providing your information early can speed up the process. All lenders want is people who are likely to be able to pay them back. They base some of their decision on your credit check, so checking what it is will is crucial.

Get the Right Property

It is an obvious suggestion, but getting the right property is the most important aspect of buying your first house. No matter what the deals are on the table. A good deal is only great if you want to move into the home. There is no point finding the best deal on a house that you would be reluctant to live in. However, you will still have to make compromises. Your dream house is most likely out of reach, so you might have to settle for something a little bit less than that ideal. House prices have somewhat stagnated, which means the idea that purchasing a house as an investment is slightly outdated. This gives even more reason to get on the property ladder, but it does mean you will have to feel certain about the house.

Work Out Your Deposit and Borrowing Figures

The long held popular belief that to get a mortgage you need to have a huge deposit, is a thing of the past. This outdated notion has been replaced with a more subjective understanding. The amount a person can borrow is determined by the individual specific circumstances. Even though the amount of 95% mortgages has reduced, it is possible for those on low incomes to get on the property ladder. For borrowing, most lenders work on an affordability model that looks at all your financial figures in and out. The maximum lending is usually around four times the income of the would-be household.

Understand Your Repayment Terms

As a first-time buyer it is easy to be drawn into getting a mortgage that you think is good, but turns out to benefit the lender more than you. There are many different types of mortgages available, so be sure to research in thorough detail before you commit. Fixed-rates will mean you pay back at a set price. Alternatively, variable rates go up and down with the Bank of England’s base rate. Seeking advice from professionals such as Capital Fortune is a good idea, this way you can make a well informed decision.

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