Mortgages, to someone who has never had to apply for one before, can seem like a complicated deal. After all, you have to contend with calculations and expenses, aside from making sure that the home you choose is right for your needs. But if it’s your first time to apply for a mortgage, you need not worry too much – there are tips and hints out there of which you can take advantage. So is it your first time to apply for a mortgage? Here’s what you should know.
The basic rules
If you are thinking of applying for a first-time buyer’s mortgage, the first thing you need to consider is your finances. More specifically: are they in order? You need to have good control of your finances so you can determine exactly how much you can afford, not only when it comes to the deposit, but also when it comes to how much you can afford to pay per month.
The first step: assess your credit score
After you have assessed your own finances and how much you can really afford for a deposit and for repayments, you need to assess your own credit score or rating. How do you do this? It’s simple: do a credit search. You can do this through several organisations which supply information on people’s credit ratings. Don’t just check your credit rating with one organisation – make it a point to get your credit score from two or even three sources, since these organisations may have different criteria for rating people’s credit scores.
Know what lenders are looking for
You also have to inform yourself with regards to what precisely mortgage lenders are looking for. What are the factors that influence a mortgage lender’s decision? One such factor is your expenses. Expect to be questioned about your expenses in detail, especially when it comes to items such as food, child care, other loans (such as car loans), utility bills, and even such arrangements such as mobile phone plans or gym memberships.
The mortgage lender will do a thorough assessment of your expenses and compare them to what you are bringing in each month, and whether or not you can realistically settle your repayments, especially if you lose your job or you experience certain changes (such as the birth of a child, etc.).
The necessary help
Mortgage lenders are now stricter in regards to particular requirements. You need to provide them with a full documentation of your income, expenses, and so on. In this regard, it pays to seek necessary help from the experts, such as a mortgage broker Colchester from Flagstone. A mortgage advisor can provide you with expert help and advice, allowing you to take care of your application with the right knowledge – and the right contacts as well.