When you’re buying your first house, you’re in a very fortunate and exciting position. Applying for a home loan may seem like a daunting process, but it doesn’t have to be that way if you are fully educated on how it works. When you understand the insurance and outs of getting your first mortgage, it’s not as scary as it used to be.
Securing your first home loan is important if you want to get onto the property ladder as soon as you can and mortgage solicitors can help you to do it. In this article, we’re going to discuss how you can prepare for your first mortgage.
- Learn about what you can borrow. Understanding your borrowing power is the very first step in preparing for a mortgage. You can’t look online at houses that are dreamy and wonderful if they’re going to be way out of your price range because not only will you be setting yourself up for disappointment, but you’ll feel like you are way out of your own league. Before you apply for any type of mortgage and begin that Property Search, you should find out what your borrowing power is.
- Have the biggest deposit possible. Saving what you can to reduce your mortgage is a smart start to getting your first one. The more you’ve saved towards your first home, the less money you’ll have to borrow. And the less money you have to borrow, the easier the repayments. If you’re not saving some of your income every month, now’s the time to start drawing up your budget and sticking to it. To make your savings take off, make sure that you put everything into a high interest savings account so you can take advantage of any Super Saver schemes and home deposit schemes.
- Find grants that are available to you. Speaking of super savers and home deposit schemes, there usually are plenty of government available grants to help you to get your foot on the property ladder. These can include anything from stamp duty exemptions or concessions to a First Home Owners grant. These are benefits that can be very generous if you’re buying a brand new home under a certain value, so make sure that you are looking into these before you start looking at areas and costs.
- Get some help. Mortgage solicitors are able to advise you on what type of mortgage you could have, but you should also understand that most lenders understand that saving for your first home is not easy, so getting some help with getting to that deposit figure that you need means looking at every resource possible. Depending on your job, you may not be subject to LMI either, as this will add to the cost of your monthly repayments. You want to make sure that you can get as much help as possible and that means getting some wealth advice and speaking to people to see if they can guarantee you.