Buying Your First Home – Where to Start
Knowing where to start when buying your first home can be confusing. However, there are some simple steps you can take to make your path clear and increase your chance of being accepted for a mortgage.
1. Check Your Credit Score
Banks use credit scores to judge whether or not you’re trustworthy enough to take out a mortgage. You can check yours online for free with companies such as Experian and Equifax.
2. Work Out How Much You Can Afford to Borrow
Your income will affect how much you can borrow, and with incomes in Northern Ireland typically lower than the rest of the UK (the Department for the Economy reported in April 2016 that the median gross weekly earnings for full–time employees was £495) mortgage companies need to be sure you can make your repayments. Draw up a list of your incomings and outgoings, and work out how much you’ll feasibly be able to contribute monthly. If possible, place a larger deposit; this will reduce your mortgage payments.
3. If in Doubt, Ask a Mortgage Adviser
A mortgage adviser will need to know how much you spend every month on bills and credit cards, and will need copies of bank statements and pay slips. This will enable them to calculate how much money you may be able to borrow. It is vital you are honest with your mortgage adviser – you don’t want a debt you can’t afford.The mortgage adviser will run through your options and may act as a broker, contacting lenders on your behalf. Getting a mortgage agreed in principle allows you to make an offer on a property – estate agents will not take you seriously until you have that in place. Once you know how much you can borrow, you can start looking. Always keep your budget in mind and remember to cost in things such as redecorating or renovation. Look at several properties and always view with your head, not your heart.
4. First Home Advice
For mortgage advice on your first home, contact us at Financial Foresight today.
Call into your local Ballyclare or Belfast branch today.
