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Buying your first or any home for that matter is one of the most exciting things you’ll ever do. You’ll feel like it’s one of the biggest steps you’ve made into adulthood and it can be a great feeling to say you own your own home. You need to make sure you’re ready to buy a home before you commit though.
It can also be an extremely stressful time and sometimes it’s all a little too overwhelming. It’s a huge decision and may be the biggest financial commitment you ever have to make, so you need to make sure you’re getting the best deal you can. Follow these top tips to get the mortgage you truly want.
- The bigger, the better – where deposits are concerned
The bigger the deposit, the better. Even if you’re not ready to buy a house now, start saving because the more you have to offer as a down payment, the more choice of mortgages you’ll have to choose from. Mortgage providers keep their best rates for people who have large deposits and the other benefit is that you’ll have far less to pay on a monthly basis as you’ll get a better deal.
If you can’t afford a big deposit upfront, you might want to consider a longer mortgage amortisation to reduce your monthly payments. This means it will take longer to pay back your mortgage, but you’ll have the benefit of reduced payments in the short-term. When you renew, you can always change your amortisation period as your financial circumstances change.
- Get the best mortgage rate
Make sure you do your research before committing to a mortgage as you might find you’re being charged an extortionate amount of interest. Home loan rates differ depending on which mortgage provider you go with, so don’t just grab the first opportunity that arises. Shop around.
- Clear your debts
Debts won’t do you any favors when you’re trying to lock in the best mortgage deal. When submitting an application, you’ll be asked to declare how much you owe, so resist the urge to put all sorts on your credit card. The last thing a mortgage provider wants to see on a mortgage application is a huge list of outstanding loans that need to be paid back. They need to feel assured that you will be able to pay them back and make your monthly payments. If they don’t get that impression, you won’t be getting your mortgage.
If you do have a fair bit of debt under your belt, hold off on applying for a mortgage until you’ve managed to reduce them. You want to seem like someone who’s responsible with their money and you’re more likely to get that stamp of approval.
- The proof is in the pudding
When approaching a mortgage provider for home loan rates, one of the first things they will want to see is proof of how much you earn. People have a tendency to over embellish where earnings are concerned but this won’t do you or the mortgage lender any favors as they will need to calculate what it affordable for you to pay back which is obviously a good thing for you. Take along a P60 form from your employer which displays how much you pay and how much has been deducted. It’s good to take along your last three months’ bank statements and payslips so the lender can work out how much would be a reasonable amount to lend given how much your outgoings are.
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