1. Figure out the property size and location. This will have a large impact on the price of your mortgage, which is why having an idea of the type of property is incredibly important.
It is necessary to have a budget in mind when you are ready to purchase your new home to ensure that you can afford the monthly payment.
2. If you are a first-time buyer, looking into different offers from mortgage lenders to see if any suit your home buying needs.
Take advantage of all available discounts and price breaks that you can. Research can ultimately save you much money, and the time you put into looking for discounts is minimal.
3. Start saving for a down payment. A down payment is the money you will put towards your house yourself, and not borrow from the bank.
This amount is typically 10 – 20% of the total cost of the home. The higher your down payment, the lower the mortgage you need to take.
4. Decide which mortgage type is correct for your needs. There are different types of mortgages with different terms and repayment options.
Again, researching before you decide on a mortgage type is vital to get you the best deal possible.
5. Ensure you can comfortably afford the monthly mortgage payment and any additional monthly fees before you apply for the loan.
Being unable to pay your mortgage on a regular basis will result in a large drop in your credit score, late fees, and may eventually result in the loss of the property.
There are many factors that lending companies consider when you apply for a mortgage.
Credit history and credit score are large considerations,however,even with less than perfect credit, this shouldn’t stop you from applying for a mortgage and owning the home you’ve always dreamed of.
At 1st UK Mortgages we specialize in bad credit mortgages and welcome you to visit our website www.1stukmortgages.co.uk/ to learn more about how we can assist you to purchase your new home.