Buying your first home is an exciting time but can also be quite daunting. Before you have decided on the right property for you there is a lot to think about and this guide will hopefully prove useful. There can be a lot of disappointment and frustration unless you are properly prepared, we aim to point out some of the pitfalls and mistakes our Mortgage Advisor commonly sees when unprepared customers come to The Mortgage Clinic Belfast.
Get your own house in order…
Be responsible with your spending in the months leading up to applying for a mortgage advice. Do not go into your overdraft! Remember you will have to show your bank statements which will be scrutinised by lenders to see whether you are reliable and can afford what you are trying to borrow, and being in an overdraft gives the impression you don’t have enough money to live on and pay all your monthly commitments. It always our advice to try and save some money towards a deposit, even though you may be getting a gift towards your deposit from your parents, or you may be applying to purchase through the Co-Ownership scheme.
Run an up to date credit report on yourself. Any Bank or Building society will run a credit check on you as the first hurdle you must get over on your journey to a successful mortgage application, and they will want to see that you have a history of borrowing credit and repaying it, without missed payments or defaults. Use Experian or Equifax as these reports are the ones most lenders will use also.
Make sure you are on the electoral register at your current address, and that all of your bank accounts and credit commitments are registered to the same address as you are living in. This makes things much smoother at application and could cause a mortgage lender to decline your application if this is not in order.
Make an initial mortgage planning appointment
At The Mortgage Clinic our initial planning consultation and free mortgage advice will help you to set your budget, saving you time on viewing houses that are perhaps outside of your price bracket. We can tell you how much you can borrow, what costs and fees to expect and how much of a deposit you will need.
No need for you to check all the banks and building societies yourself – we can do this for you, all under one roof! Because we work with all the major UK lenders, as well as the local ones, you can be sure of independent mortgage advice, best suited to your needs. Each lender has their own lending criteria but our expert knowledge will make sure we find a solution that is matched to your own specific circumstances.
We will review your credit report which is the first hurdle to get through when you’re borrowing money of any description – whether it’s a mortgage, credit card or personal loan.
We will gain a mortgage ‘Agreement in Principle’ for you so you can be sure you can get the mortgage you require.
You will leave the Planning Consultation knowing how much you can borrow, how much it is likely to cost and what documents you need to start gathering together – ready to find your dream home!