Buying your first home can be really exciting and there is also a lot that you need to do. The process of purchasing a home is complicated and frequently drawn out, but if you can understand the fundamentals of how it works, you’ll be less likely to be surprised along the way and your experience will be smoother.
Get your current account in order
Your lender will conduct an affordability test based on your income and monthly expenses to determine how much you may borrow. Therefore, it can be a really good idea to review your current account six months before applying for a mortgage and determine where all of your money is going. Try to terminate any costly credit agreements, expensive gym memberships, or frequent expensive outings so that your finances appear to be in better shape when the lender starts to check.
Consider How Much Deposit You Need
To obtain a mortgage, you must make a lump-sum cash deposit on your home. The more money you can put down, the better, even if some mortgage providers would accept a 5% deposit and offer 95% mortgages. You should have access to a far larger range of lenders and qualify for reduced interest rate offers if you can come up with a 10% or 15% down payment for a mortgage.
Place and size
The following section focuses only on location. Of course, everyone wants to live in a desirable neighborhood, so it’s crucial to examine the distance to the closest stores, schools, and recreational areas, as well as how simple it is to access transport routes and commute to work. Some homebuyers don’t mind being on the main road, depending on their tastes, while others choose a more tranquil environment with a lot on a cul-de-sac or side road. It’s also worthwhile investigating any “up and coming” places with affordable housing costs that are anticipated to rise in value over time. If you don’t want to go for a bit home to start you could consider Meriton Apartments.
Think about your career
When you’re considering buying a house, there are a few factors relating to your employment that are crucial. How stable is it first? Are you at least a year into your current position? Do you anticipate continuing in this position for the foreseeable future? Before providing a loan, a lender will consider these factors and discuss them with you.
Your commute is the second factor to think about. Is length important to you? Does your partner care about it? Is it still a place you’d be glad to live if you pick a home close to your place of employment and then lose that position or accept one elsewhere?
Request a mortgage commitment in principle
A mortgage lender will affirm their willingness to give you money in principle by providing you with an “agreement in principle” (AIP). It is often referred to as a principled decision (DIP). This will help you show sellers that you are serious about buying as well.