Applying for your first mortgage
So you’ve done it all, saved up that crucial deposit. You’ve spent many weekends in to save your hard earned cash. You’ve decided what you want from your first home and found a property you’d like to buy. Now it’s time to go to the bank and get that big fat yes you’ve been looking forward to.
If you think it’s that easy then think again. There are plenty of things you need to consider before you walk through the door of any financial institution.
The easiest thing to start with is to understand how much you can afford to borrow. Use a mortgage calculator to find out the upper amount a bank will loan you. Your deposit must be at least 5% of the overall value of the property so factor this into your calculations. Then you will know what price range you are working with when the time comes.
Other factors to consider
Let’s do everything we can to make sure you are not one of the remaining quarter! Something you must consider while you are busy building your deposit is your credit rating. You should work on having a good credit score long before applying for a mortgage. You might need to tweak some of your finances and give it some time before putting an application in so the sooner you know your score the better. Both your credit score and your mortgage application will benefit from proof of your deposit.
It is better to see it building up over time and in regular amounts rather than haphazard and sporadic savings. If you can give a clear picture of regular deposits with a paper trail for six months, this will be good for your application.
Also, if you are in receipt of any financial gifts it is imperative to have a letter stating that the amount received has been gifted to you. If you feel you will need this assistance from family it is a good idea to have it all worked out early on in the process.
Extra costs to remember when purchasing London property
Solicitors fees, stamp duty and mortgage application costs all need to be considered alongside structural engineer reports if buying a secondhand property. Find out more about the fees & costs that buyers in London need to consider.
There are different rates of stamp duty depending upon which price bracket you are purchasing in. Use our Stamp Duty Calculator to work out how much you will need to pay.
Ultimately, when you get that yes it is imperative to know your price limit and stick to your budget.
Thinking of buying your first home in Hayes?
If you are a first time buyer and want to see what we have in your price bracket then give one of our team a call. We have some fantastic properties on our books and would love to talk to you today.