Buying your first home can be a dream come true, and a life-changing adventure. But you should make sure that you have your finances and legal documents in place.
It would help if you did as much research as you can into all of the costs you may incur, and set aside an affordable budget that will not leave you struggling with making the repayments each month.
In this equation you should also consider the cost of the house you intend to buy, is this your first home, or your second, and how much can you comfortably afford to pay on a mortgage?
Buying Your First Home
So, you’ve found the house of your dreams, and have a small deposit. You may be a little uncertain, about what to do next to make the home yours, and you start to set the wheels in motion to becoming a fully-fledged homeowner.
First, you will need to find out the best place to go when getting a mortgage, unless you’ve saved the whole amount and can buy the house outright.
You May Not Be 100% Sure What A Mortgage Is?
- A mortgage is a loan that you take out to buy property or land.
- Many mortgages run for up to 25 years. However, some may be shorter, or longer dependant on the house much the property is worth.
- The loan or mortgage is secured against the property, until you have paid this off completely.
- Be aware that if you cannot make the repayments, your lender can repossess your home and sell it to get their money back.
- Think also about any additional costs you will need for the move, purchasing furniture, decorating costs and the finances for paying all the household bills once you have moved into your new home.
Where Can You Get A Mortgage?
You can apply for a mortgage directly from a bank or a building society, they will have a range of mortgages they can offer you. It is essential to look around and find a mortgage that works best for your wallet and circumstances.
In addition to banks and building society, you could also use an independent mortgage broker or financial adviser. Getting some sound advice will be very beneficial, and it could also save you time and money.
Here are a few things you should have at hand when meeting to discuss getting a mortgage:
- What is the property you are considering buying?
- How much will you need to borrow and how long do you need the mortgage to run?
- You should also compare home loan interest rates and decide on a rate that fits your budget.
Starting The Process
Getting a mortgage is usually a two-stage process.
The lender will discuss your financial picture with you to assess if you are financially stable. You will also need to provide evidence of your earnings.
You should consider all of your options, if the application is not accepted.
Your journey to becoming a house owner has now begun!