Being a first time buyer can be scary, but owning your own home can feel like such an accomplishment.
Being able to say, “This is my home. I own it.”, is thrilling. Which is why it’s SO important to plan for your mortgage carefully.
By avoiding these common mistakes, you will be on your way to getting your mortgage and owning your dream home.
Running to a Bank before a Mortgage Broker
One of the biggest mistakes a first time buyer makes is seeking help from their bank.
Banks are only limited to one lender, whereas if you go to a Mortgage Broker, they can shop the market for you and find the best lender with the best rates. A broker will also do the hard work for you. Instead of you filling out forms and chasing multiple lenders, a mortgage broker will take care of the entire process, taking the stress out of your hands.
Ignoring your Credit Score
The first thing a lender will look at is your credit score, as it shows them if you can repay the loan.
If your credit history is poor, then it can lessen your chances of qualifying for a mortgage, and then ultimately losing your chance at owning your dream home.
Not being Pre-Approved
When getting your first home, the first thing people do is search for a home online that they want to live in, which is probably the worst thing you can do.
Sounds ridiculous, I know, but wouldn’t you rather find out what you can afford first before actually looking for a home?
You don’t want to spend hours upon hours finding your dream home, just to find out later that it doesn’t fit your budget.
So, here’s the bottom line. Getting yourself pre-approved should be your first task before going on the hunt for your house. By doing this, it will allow you to know how much you can actually afford, and you will have a better chance at finding the right home for you.
Forgetting Additional Expenses
Buying a home isn’t just about paying back the mortgage. It’s highly important that you remember to factor in the additional expenses that come with owning a home, such as monthly utilities, legal fees, removal fees and so on.
Forgetting these expenses can add some serious financial pressure onto your plate.
What you can do!
If you are planning for a mortgage, Basik Money can help you. We search all lenders to find the best mortgage available to you, no matter how your credit history looks.
Call us today on 0330 041 2299