Top tips for first time buyers
TOP TIP 1 – MAKE SURE YOU CAN AFFORD THE PROPERTY
Do your sums ! Before buying your first home you need to make sure you can afford it. Factor in things like the cost of your deposit (usually between 5-25% of the property price). The more you put down the better, the higher percentage of deposit the better change of your mortgage application being accepted and the lower your interest rate will be for repayments. Think about your affordability not just now but in the future. Could you afford your monthly repayments if the interest rate was to rise in the future or if your circumstances were to change. Also factor in additional costs like legal fees, removal costs, etc and know what these will cost you in advance.
TOP TIP 2 – IMPROVE YOUR CREDIT SCORE
When deciding if you are a suitable candidate to lend to mortgage providers will review your credit file and check your overall credit score. The higher the credit score the higher your chances of being accepted for a mortgage.
It is important to review and understand your credit score, a copy of your credit report can be obtained from a credit reference agency such as Experian or Equifax. These same companies are who lenders use to obtain your credit information so getting your credit report in advance gives you a good insight as to what the lender will see when checking your credit information.
Things you should do to improve your credit score include always paying any credit repayments (credit cards, loans, mobile phone credit agreements, etc) on time. Do not miss or be late with the payments this will negatively impact your credit score. If your repayment date does not suit and is causing you to miss or be late with repayments speak to your credit provider and ask them to change the date in the month you pay to ensure payment is always made on time. Most credit providers will be happy to do this.
If you have had no credit you have no credit history and may be seen as a risk to lenders. If you have never had any credit it is advisable to take out some before applying for a mortgage. A credit card where you pay off your balance every month shows you can manage credit and will build up your credit repayment history and credit score.
Make sure that you are on the electoral role, this will also improve your credit history.
TOP TIP 3 – GET YOUR MORTGAGE APPLICATION IN EARLY
The best advice is to start the process of applying for a mortgage before you even start seriously looking for somewhere to buy. If you’re looking at properties before starting to arrange your mortgage, you’ve left it too late. … You’ll be at an advantage compared to rival buyers who do not have a mortgage in principle.
TOP TIP 4- MAKE IT KNOWN YOU ARE A FIRST TIME BUYER
Work being a first time buyer to your advantage. You have no chain and do not need to wait on other properties to sell making you an attractive proposition for sellers especially if you have your mortgage in place. You can offer the seller a quicker entry date as a result of this.
