Being a new homeowner is something which we will all go through in our lives, and it is one of those things which we don’t get taught about at school.
When it had reached the time in your life that you want to buy your first home there are a lot of things to think about. You will need to consider your mortgage repayment calculator, think about the contract, and consider all of the extra costs and niggles which come with buying a house.
Today we are going to focus on the mortgage, and some handy tips you should know to make the process easier to understand and easier for you.
1. Know what you can afford
When buying a house perhaps the most daunting prospect of all is working out how much money you can spend on your new abode.
There are a lot of costs involved in buying a home however you need to have a starting point to work from.
Most lenders such as banks will have a mortgage in principle calculator on their website and you can input your details to find out how much this lender would be prepared to invest with you for a house.
It is important that you do this calculation first before you even start looking for a house because it will allow you to narrow your search.
2. Check your credit score
As a young adult, it may never have come into your realms of need to check your credit score.
Your credit score is a history of any credit you have ever taken out such as a car loan or a phone contract, and it will help a lender see how trustworthy you are.
If you have never missed a payment for any of your loans or contracts then you should have a high credit score and this means you are more likely to be accepted for a mortgage right away.
If you have a low score, you can try to improve this by taking out a small credit card and paying it back every month during your search.
3. Know the other costs
As we said earlier, there are more costs involved in buying a house than you might think.
This means that even if you have a $20,000 deposit, you might not be able to afford a $200,000 home after all of the other charges you need to pay. The other payments you will need involve solicitor fees, land tax, stamp duty, furniture and even the bills monthly.
It is important that you calculate everything you need and that you adjust your budget according to this.
4. Work out your eligibility
Sometimes you might be eligible for a scheme such as a help to buy scheme or even something like a newbuild scheme.
Make sure that you check with your local authority to see if you are able to buy a home with one of these schemes because this might make the process cheaper for you and much easier too.