Are you a first time buyer? Great, but what do you need to do to ensure that you can buy the house of your dreams? Read on….
Many first time buyers fall short at the first hurdle, which is arranging their finance. Often, there has been no thought as to how they can get a mortgage, and whether or not they are even eligible. If somebody were to ask you how much you thought you could borrow would you know the answer?
Unfortunately, it is not an exact science and the mortgage market has been making a number of changes in recent years to ensure that they give the most diligent underwriting possible to each, and every, case. Ultimately what this means is that you need somebody on your side to present your case. Wouldn’t it be so much simpler to have somebody working for you, rather than on your own? We assess your income, your expenditure, fully ensure that we have a good understanding of your circumstances before submitting your case. What this does is maximise the chances of your case being accepted, and to ensure you can shop around with greater flexibility.
So, what steps should you take?
- Get in touch BEFORE looking at property. The key is to know what you can borrow, and to get an agreement for this amount. Often referred to as an agreement/decision in principle this will be an absolute must if you are relying on finance for your house purchase. Quite often an estate agent will not entertain an offer before this is provided.
- Ensure all your documents are up to date. Organisation is key, as you may need to move quickly. ID, payslips, bank statements, proof of deposit. These are just a few of the key documents you will need to hand to your advisor. The better your case is packaged, the sooner your application can progress.
- Consider a review of your bank statements. Affordability has undertaken a big review in the mortgage market, and many lenders will investigate your bank statements for erratic, and worrying spending trends, such as high social costs and gambling expenses. Take a step back and consider a mortgage payment being added to your current set of accounts. Could they handle it without going overdrawn? If not, then consider refining your spending habits to paint a better picture. The most responsible your accounts, the better profile you create to a lender.
The above is not an exhaustive list, but it is a good start, and hopefully gets you thinking along the right lines. Ultimately we like to think that everybody needs that little extra help when it comes to a mortgage, and that’s why we are here to help you, so get in touch today and find out how Pinnacle Mortgage Centre can assist in ensuring your dream home becomes a reality.