Buying Your First Home – Here’s What You Need To Know
Buying your own first home can be a huge undertaking. But, it is also one of the most rewarding things that you’ll do in your life. The first time you close on your first house will be a big moment in your life, so make sure you’re well informed about what’s going on.
Here Are Three Top Tips For First Time Home Buyers:
To get started on this journey, first find out if you are eligible for a mortgage. You can get this ball rolling by taking advantage of mortgage calculator sites, an example is www.mortgagecalculator.uk if you’re considering purchasing in the UK. Then work with a qualified lender to apply for a mortgage loan for your new home.
Buying Your First Home Tip #1 – Get Pre-Approved For a Mortgage
A lender will require you to fill out paperwork and provide documentation regarding your income, credit score, etc., to determine how much of a loan they are willing to give you (i.e. the affordable amount for them).
Find out and understanding your credit rating is well worth your time – and could mean the difference between qualifying or disqualifying on mortgage approved. You can usually get your credit rating by applying online to the governing body, for example in Ireland you can contact the Irish Credit Bureau.
In addition, your credit score determines how much risk an individual poses as a borrower, so if your rating is good, it’s one less hurdle to jump when applying for a first home mortgage.
One important tip is: Take a look at your credit score and see if any errors need to be corrected before you begin applying for mortgages. It could be something as simple as an error on an old bank account that determines your credit rating and ultimately the success of a mortgage approval!
Further Reading: Renovating Your Home – 5 Important Things to Consider
Buying Your First Home Tip #2 – Get Professional Help!
Why is it so essential to work with professionals when you are first time buying a house?
The process of getting a mortgage approval can be complicated and complex without some help along the way.
If you can, find a lending advisor who specialises in mortgage loans – this person should know all about lending rules and regulations and offer advice on financing options that will best suit your needs.
A mortgage professional should be able to answer all of your questions and make sure that the process goes smoothly.
In addition, you shouldn’t worry about overpaying for something because they helped point out some hidden costs before it was too late!
Further Reading: Six House Plants that Clean the Air we Breathe in Our Home
Buying Your First Home Tip #3 – Find a Qualified Lender For Approval
Finding a mortgage lender is the next step in buying your first home, and research is key – you’re looking for one that will not only provide you with competitive interest rates on your mortgage loan – rates often differ from one bank to another, so you need to work out which bank works best for you. But also give you the best advice, and make you feel comfortable in this milestone decision.
The second step is deciding on your budget and the type of house that suits your needs. This will determine what size mortgage loan you qualify for as well as how much money you need upfront to make a deposit (down payment) on it. A good mortgage lender will help you work out how much home financing will cost and advise you on all the documents that must be filed for successful mortgage approval.
Again, it’s essential to know this information before setting up an appointment with a lender so they know exactly where you stand when determining which options would work best for you.
Finally, a qualified lender will help you understand all of your responsibilities as soon as the closing is finalised. That includes understanding your first payment and how often you have to pay it, the cost of homeowners insurance, and of course mortgage protection insurance – which is required by law here in Ireland.
Further Reading: Why You Should Prioritise Efficiency In Your Home
Photos by Tierra Mallorca – CCO Licence