4 Tips for First-Time Home Buyers
If you’re planning on buying your first home and are a little overwhelmed with the whole process, you’re not alone. Studies show that first-time buyers make for majority of home purchases that are bought with a mortgage in the UK.
In fact, recent survey shows that number of first-time buyers in 2019 reached the highest levels since 2007! This is a clear reflection of historical low mortgage rates, along with the increased uptake of the government’s Help to Buy scheme.
That being said, it’s worth mentioning that owning a home is a big commitment, it isn’t a guaranteed good investment.
However, for some homeowners it’s a smart long-term move with great returns on investment, you just need to approach the process cautiously and strive to learn as much as you can about the process before you finally pull the trigger.
Here are 4 tips that’ll help you get on your way:
1. Apply For a Mortgage before Looking For a Home
- 1 1. Apply For a Mortgage before Looking For a Home
- 2 2. Explore Your Mortgage and extra monthly Payment Options
- 3 3. Check Your Credit
- 4 4. Hire a Mortgage Broker
First-time buyers often make the mistake of looking for homes before they even talk to a mortgage broker.
It’s smart to get an agreement in principle in advance, because this way you know for certain how much you can borrow. Plus, in this competitive market, many sellers and agents don’t even look at offers until they have assurance that the buyer can get a loan.
So, before you fall in love with that stunning dream house you’re eyeing, get an agreement in principle. It sends a message that you’re a serious buyer with credit and finances that can get you a mortgage successfully.
2. Explore Your Mortgage and extra monthly Payment Options
The sooner you start saving for extra payments, the better. Of course, you may not necessarily need a hefty down payment. But, remember, the more you pay down, the likelier you are in a better financial situation down the road. Making a higher down payment means lower monthly mortgage payment.
3. Check Your Credit
Home buyers often overlook the importance of their credit score; it determines the interest rate and financing options when buying a home.
If you don’t have a high credit score, it’s probably a good idea to take some time to improve it before getting a loan.
Moreover, keep your score from plummeting after you apply for a mortgage; avoid opening new credit accounts—such as an car finance or a credit cards prior to you completing on you purchase.
4. Hire a Mortgage Broker
A qualified mortgage broker can help you find a mortgage that suits your budget and specific needs. They use their expert knowledge of the housing market to identify the right mortgage deals and lenders out there.
As one of the leading mortgage advisory firms in the UK, our mortgage brokers are committed to help first-time buyers avoid risky mistakes that’ll hurt their financial situation.
From residential mortgages to buy to let remortgages, and remortgages, our team of specialists can guide you through it all!
Get in touch with us today for more information 0207 822 2390.