The housing market is finally heading in the right direction with interest rates going down. Getting a house is more difficult than what it used to be however and it can be stressful, particularly if you are a first time buyer. Finding a house and negotiating with the seller can be hard but the most difficult part is often getting a mortgage in the first place.
Look for a mortgage lender before you find your new home
It’s all well and good finding your new home but if you haven’t found a company prepared to lend to you then it’s all in vain. It is pretty important to get pre approved by a qualified lender so do your research. Let the team at Capital Mortgages guide you through your decision process. As an independent we do not work for any individual institution, nor are we owned or mandated directly or indirectly by any one lending institution.
Make sure that you have a deposit
Ensure that you know the down payment amount and you have it in your bank and ready to go. The rate of interest you pay on the amount of money you borrow and the size of your deposit are key to the mortgage deal you’ll be able to get.
Stay financially stable
Just because you have been pre approved, it doesn’t mean that you are guaranteed to be approved when you find a house. You need to continue being careful with your savings and don’t do anything that would adversely effect your financial situation like changing jobs. Lenders like to see that you have a steady income and are being careful with your money.
Pay off any existing debt
This step should really come before you have even found a mortgage lender, you should try and clear any existing debt that you have. This includes credit cards, store cards, loans, overdrafts and anything else. If it’s impossible to get rid of them completely then just minimize them as much as possible. Additional debts will lead to higher mortgage rates and lenders will be less likely to accept you at all if you have existing debt.
Try not to take out any more credit
Avoid taking out any new credit, no matter how small it is. Lenders will see that you are in more debt and will put their interest rates sky high in retaliation. All your attention should be getting your mortgage and being able to make the repayments each month, additional credit will just put more stress on you and it should be avoided.