Getting your first foot on the property ladder and buying a home can seem like a very scary thing to do. Getting a mortgage is probably the biggest financial commitment you will ever make, so you need to make the right choice. Even so, many people get mortgages even though they don't know much about the process. Before you buy a house, it pays to know what you're doing. If you know how to get a mortgage, you will get a better deal and be able to find the right home for you.
How much a mortgage costs
The biggest cost of a mortgage is, of course, the lump sum you want to borrow plus the interest. But there are a lot of other costs to think about when you get a mortgage. Setting up the mortgage and paying the lawyer's fees usually costs a few hundred pounds. You should also think about the costs of the survey, the land registry, and the stamp duty. There's also the amount of the down payment. All of these things can add up to make the first steps of getting a mortgage pricey. Make sure you have all of these funds before you go any further. Before you even think about getting a mortgage, you should have a stable income.
Finding a lender
Once you know how much a mortgage will cost, you need to find the right lender for your situation. It's important to look around for the best deal, and it's a good idea to check out both online lenders and your local banks and mortgage providers. Before you go house hunting, you should look into lenders. This will give you a better idea of how much you can borrow and how much the lender will give you. So, when you look at houses, you will know how much you can spend. Some lenders will give you a pre-approved amount, which can make the process of buying a house go faster.
Finding a place to live
After looking at lenders, you should be able to find a property that fits your needs and is within your budget. Once you've done this, you can get a survey done and trade contracts.
What to watch out for
If you have never had a mortgage before, there are a few things you should watch out for. Most important, don't take out more money than you can pay back. Even if you've seen the perfect house, you won't be able to keep it if you can't make the payments. Don't feel like you have to borrow more than you can pay back. Remember that the lender can get their money back through repossession, and know that lenders will take on other debts rather than stop paying their mortgage. Set a strict budget and don't spend more than that. Also, make sure that the mortgage terms are fair and that there are no hidden costs or services you don't need, like credit insurance.
Learn the rules
The last thing you need to do to find a good first mortgage is to know the terms of the process. If you know what to look for and what you really need, you can find a mortgage that fits your needs and doesn't cost too much. Now, all you need to do is find a house that fits your budget.
