News For This Month: Lenders

Best Mortgage Tips for the First-Time Homebuyer Taking a mortgage is no doubt a major commitment. It’s therefore important that you find the best deal possible if you are a first time home buyer. You’ll need to be in good financial shape in order to get approved and qualify for a good rate. This means there are a number of things you must be aware of before arranging the mortgage. Here’s a look at a few tips that should help you secure the best deal possible. Budget Before you apply for the mortgage, it’s vital that you take a bit of time budgeting. To begin with, consider whether you’ll be able to afford paying back the amount you’re borrowing.To begin with consider whether you’re going to afford to pay back the amount you want to borrow. Next, you’ll need to be sure that the amount you borrow will be enough to purchase the property, with some spare left to cover associated costs. Do you anticipate any problems with your monthly repayments? You’ll need a mortgage calculator to work out the numbers so you can be adequately prepared before approaching a lender.
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Your credit score and credit history are among the factors your lender will consider when assessing how much of a risk you are. You should therefore have a look at your credit report before applying for the mortgage. The last thing the lender wants to see is that you have credit cards with huge balances. So be sure to pay off your debts, or at least have these balances at a minimum. It’s also helps if you don’t have any outstanding loans, such as financing a new car, at the time of your application. Having your credit in good shape is a sign to the lender that you’re good at managing your finances properly, and this improves your chances of getting approved. Consider length of the loan This is no doubt one of the top considerations. While a 15-year mortgage may be provided at lower interest rates, your monthly payments will be bigger than if the repayment period was stretched to 30 years. If you can afford the large payments, taking a shorter term loan would be a good idea. Job stability is important Having a stable job helps, as most lenders want to see that you’ve been in a certain job for a bit of time. So if you’re considering switching jobs, you may want to secure the mortgage first before going ahead. Most lenders will only consider applicants who’ve been in their current jobs for a minimum of 3 – 6 months. Keep in mind that one of the things they will require is proof of income. That means obtaining the necessary documents from your employer. You might also be asked to provide your last three months’ pay slips and bank statements so the lender can have a look at how you’re earning and spending money.