When you are buying your first home it can feel a bit overwhelming at times – things that you had never thought about before such as finding a local property conveyancer such as Sam Conveyancing building surveys Birmingham suddenly become things on your to do list, and there is a lot going on. One of the most important things that you should get right when buying your first home is the mortgage – once you have saved up that important deposit it is time to start the search for a mortgage, but this can be complicated if you have never done it before (and even if you have!) as there are such a wide range of options available, you want to make sure that you are getting the right one for you. So how do you go about finding the right mortgage for the biggest purchase of your lifetime?
You can get a mortgage advisor or an Independent Financial advisor who will be able to help you to compare different mortgages and explain them to you in more detail. This is a good choice for a first-time buyer, as the number of options on the market can be very overwhelming! There are lots of banks offering many types of mortgage, so it is also worth making an appointment with your bank to discuss the types of mortgage that are available to you and go through the mortgage process in more detail.
Once you are armed with more information on mortgages, it is then time to apply for a mortgage. This is something that happens in two parts. To begin with, the mortgage broker will ask you some questions – this is to ensure that you can afford to pay the mortgage back, as well as being a way that they can make sure that the type of mortgage you are applying for will be suited to you. They will also provide you with important information about the mortgage, so it is a good idea to go through this yourself.
In the second part of the process, you will then begin your application as long as both parties are happy with the first part. The mortgage broker then will do a much more detailed fact-finding exercise about you – you will need to provide them with documents and evidence that your income and your outgoings are what you say they are, through bank statements and payslips for example.
They will also probably ask you about future plans too to ensure that you have considered the fact that you need to be able to pay back your mortgage, as well as how your finances will fare against things such as future rises in interest rates. This is also where your deposit comes into it – in general, the more you have saved up as a deposit, the lower your interest rate is.
Once all of this is done and approved, you will then receive an offer in principle and the fun begins – it is time to start house hunting!