Buying a house is a big decision which requires a lot of planning and thought to ensure that it is the right decision. Here are some tips to help first time buyers who are considering buying a home:
Before committing to buying a home, work out whether you can afford to buy the house you want. You could use an online mortgage calculator to see what the monthly repayments might be for borrowing specific amounts. This is one of the areas covered by mortgage advisors on CeMAP courses, so they are a good place to start.
Save as much as you can for a deposit, pay off all your outstanding debts and reduce expenditure to minimum amounts. This will increase the chances of being accepted for a mortgage, as lenders like to see borrowers who are able to afford the monthly repayment.
Look at the extra costs of a mortgage to make sure you can afford them. Although the mortgage is the main priority, there are other expenses involved in buying a home, including a property survey and legal fees.
Prepare all the documentation that you will require when applying for a mortgage. The lender will want to see evidence of income, so if you are employed this will be payslips. Anyone self-employed will need to obtain a form SA302 and at least two years of professionally prepared accounts.
Taking the time to do a little research before applying for a mortgage will help to ensure that you are aware of the process and will avoid some of the common errors made by first time buyers.