Your life is going extremely well, having graduated through university with excellent qualifications and are now doing well in a job that you love. Your personal life has also blossomed having found a partner you love.
Marriage is in the air, so you decide that buying a house is the next step to put down a foundation that will stand you in good stead for many years. It is now time to start looking at the choice of first mortgage companies.
It’s a daunting prospect, with a potential minefield ahead. Just how do you choose what is best for you and who with. Here are 5 good pointers to help you through the process.
- Who do you want to deal with your mortgage.
You can choose between a lender and broker. A lender is a financial institution that will make a mortgage loan directly to you, while being limited to the arrangements offered by that specific bank or building society. A broker does not make you the loan directly, but will be able offer you several different schemes as they work independently.
- How much will you have to pay?
You will be advised as to how much you can afford to outlay on a mortgage after taking into consideration your credit rating, income, and assets. It is important to plan properly so that you detail all your assets, as it is likely to make a difference to the decision of the lender.
- What are your mortgage options?
The two most common types of mortgages are the conventional fixed rate mortgage and adjustable-rate mortgages. With a fixed rate agreement, it means that the interest rate will remain the same until you have finally paid off your loan. If deciding upon an adjustable-rate arrangement your interest rate, changes throughout your repayment.
- Lower credit ratings
The good news for first time buyers is that a mortgage can be secured with lower credit requirements and in many cases a lower initial deposit.
- Shop around
It is guaranteed that your business is valued, so make sure that you do plenty of research before signing any agreements. There is a multitude of companies offering many deals at different rates. Shopping around can save you a lot of money that can be spent on your new home.
Whatever options you decide upon, ensure you research thoroughly before deciding on the first mortgage that is right for you.