Buying your first house is a landmark moment in your life that you will never forget.
Getting your foot on the property ladder is incredibly exciting, but it is no secret that obtaining a mortgage can be complicated and stressful. This does not have to be the case, however, as if you are armed with the right knowledge and you are highly prepared it can be relatively straightforward.
These first-time buyer mortgage tips will help anybody to obtain the mortgage they require.
Work Out Your Budget
Before approaching any lenders, it is important that you find out how much money you need to borrow. You can work this out by sitting down and figuring out your own budget, plus be sure to consider the costs and fees of moving. Fortunately, there are plenty of handy tools online for figuring out the cost of moving and mortgage repayments.
Check Your Credit Score
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Your credit score is the key element of getting approved by lenders and it is essential that you obtain a copy so that you can see what they are seeing and ensure that everything is accurate.
A copy is available from references agencies, including Equifax. You may want to boost your rating, which can be done in a few different ways.
Get Your Paperwork in Order
One of the areas of getting approved which causes many headaches is providing the necessary paperwork. All mortgage lenders need to see proof of what you earn and what your outgoings are, as this is how they gauge whether or not you can afford the repayments.
Before approaching any company, ensure that you have your P60 form and bank statements for the previous three months. For self-employed individuals, you will need to provide an SA302 form or statements going back three years.
Put Down a Large Deposit
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Established lenders, such as Saffron, offer the best rates to buyers who can put down large deposits. Therefore, save up as much money as you can to put down as this will get you the best deal.
It may not seem ideal at first, but it is the smart financial move to make in the long run and can make a huge difference.
These are the key steps for anybody looking to get approved for a mortgage to buy their first home. With these tips, not only will it make the process much easier, but it will also help you to get approved and find a great deal.
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