Mortgage Tips For First-Time Buyers

Maybe I have written several times about tips for first time buyers, but I think this tips are the most useful.

So, First-time buyers, a phrase we categorize ourselves as when we make that all important decision to buy our first home.  People tend to feel overwhelmed, stressed and daunted with the whole affair.  I want to reassure you that it does not need to be daunting.  I want you to feel comfortable with the process, so I have put together some mortgage tips to help you successfully buy your first home.




1. Shop Around

Nowadays there are many mortgage offers available which can feel daunting and confusing.  The important thing to remember is that you have the option to shop around for the best deal for you.  This shouldn't be rushed as you will be taking on a huge financial commitment.  Don't jump for the first mortgage offered to you. Research the market and make thorough comparisons.

2. Get Advice

Consulting with a mortgage adviser has its benefit, especially if you feel lost.  Mortgage adviser are qualified professional with access to a huge variety of deals.  This means that they will be able to find the best deal for you based on your individual needs as a first time buyer.

3. Be Decisive

Only you will know what the best mortgage is for your needs.  There is not one mortgage product suitable for everyone.  You will have to consider both variable and fixed rate offers, and decide which one is most suited for you.  It's a matter of whether you will take a risk.

4. Ask Questions

Don't be afraid to ask questions.  Wherever you are seeking advice from, it is essential that you fully understand everything you are told.  Ask as many questions as you need to, as many times as you need.  Being a first-time buyer means that you will not know or understand everything.  That's ok.  Just be sure to clarify anything you are unsure of.  

5. Be Honest And Realistic About Your Situation

Many lenders base how much they will lend you on your income and expenditure.  Be honest and realistic about your situation from the start.  You need to be able to afford your monthly payments even if interest rates increase.  

Refrain from overstating your income and understating your expenditure.  It is illegal to lie about your income on a mortgage application.  Remember that lenders will carry out checks to ensure you are able to make your payments each month.

6. Think About The Future

This may be the last thing on your mind at this time.  Your buying your first home.  There is a lot involved and so much to do.  The excitement of owning your first home generally overrides thinking into the future however, this is important.  You need to think about when you may consider moving home again or taking out your next mortgage.

Thinking about this means you can consider whether your chosen lender will offer you deals when your current arrangement ends.  Many lenders offer deals to new customers so you may miss out on this.  This will, in the future force you into changing lenders for the best offers.  This will cost you money and extra time.  Bottom line, check this with your potential lender and ensure you are happy with everything before committing to any agreements. 

6. Read Small Print Carefully

It is so vital that you read all small print of any documents you are given before you sign on the dotted line.  Double check the details of your mortgage and make sure you are happy with it.  Do not forget to read over all the small print regarding the lenders terms and conditions.  This way, you know exactly what you are signing up for.

7. Shop Around For Other Services

Once you have decided on the mortgage you are happy with, the next steps would be to think about the other services that you will need.  You will need buildings insurance.  Contents and life insurance is optional but advisable.  You may also wish to take mortgage payment protection insurance.  

Your current mortgage lender may be able to provide these services for you.  Do remember they are a mortgage adviser and not an insurance specialist.  For this reason, they may not provide you with the best or cheapest deal.  It is highly recommended that you shop around again for these services for the most competitive price, and for the insurance that best meets your needs.  

8. Relax And Enjoy The Moment

With the current market, being a first-time buyer is a big deal.  Many people struggle to get onto the property ladder.  You have made it.  Enjoy the moment, be happy and give yourself a big pat on the back for accomplishing this huge achievement.  Well Done.

By, Extranos Extranoski