Will I Ever Be Able To Afford a House As a First Time Buyer?
You may be ready to buy your first house as a first time buyer sooner than you think, but there are a variety of resources available to assist you in getting on the property ladder. Here’s how to get started and make sure you can afford a house before you buy it. If you’re a first time buyer, you’ve probably been saving for a deposit for a few years to help you get on the housing ladder. When you apply for a mortgage as a first time buyer, the lender will consider your yearly salary and any other sources of income, as well as all of your outgoings, such as credit card and loan debts, home bills, childcare, travel, and other living expenses.
The lender will also look at your credit history to see if you’re a dependable borrower, and will use that information, as well as its affordability assessment, to determine how much you may borrow as a first time home buyer mortgage.
Where do I begin?
You can easily verify if your first time buyer property is reasonable and start getting your finances in order before you buy it by:
- Putting together a deposit
- Examining your financial situation
- Examining your credit score
- Organizing your earnings
- Understanding Mortgages
Get a Deposit Together:
Before you purchase a house as a first time buyer, you’ll generally need to put up a deposit, but this isn’t as difficult as it seems, and you might be able to get some help. Your deposit is generally made from your personal savings or money given to you as a gift or inheritance by your family. Getting support from family might help you get things done faster, but if you don’t have a gift from the “Bank of Mum and Dad,” you can still save a deposit on your own. Here’s how to save for a down payment on a house and where you may receive help. Here are your alternatives if you are unable to save a significant deposit but still want to buy a property as soon as feasible.
Also Read: What is Mortgage – A Beginner’s Guide?
How Do Deposits Work?
The loan to value ratio of your mortgage is a proportion of the value of your home (LTV). The deposit is when you pay the remaining balance of the purchase price.
For example, if you bought a property for £150,000 and took out a mortgage with a 90% LTV, you’d require a 10% down payment. The total cost would be £15,000.
Do Some Calculation:
- Calculate how much you can spend.
- Your financial status and income can have an impact on:
- How much of your monthly income might you devote to first time mortgage payment without going overboard?
- If lenders believe you can afford a first time mortgage, it will impact whether or not you are accepted and how much you may borrow.
- You may use our calculator to see how much a lender would be willing to offer you based on your salary.
- Examine mortgages that may allow you to purchase a home despite a modest income.
Also Read: Independent Mortgage Broker in Stratford
Look at Your Credit Record:
Your credit report is a digital record of your financial transactions. Lenders will look at this to determine whether or not to approve your first time mortgage buyer application.
Many lenders may turn you down if your credit record reveals you have too much debt or have missed payments in the past, but you may still be able to acquire a bad credit mortgage.
However, it may be preferable to first raise your credit score, which may boost your chances of being approved for a conventional mortgage after a few months or longer. This will give you additional options and possibly save you money.
Maximise What You Earn:
Lenders use your salary to determine whether or not they can give you a mortgage and how much they would lend you. To improve your chances of being accepted, do the following:
- Make sure to include all of your earnings, including your base pay, bonuses, commissions, and investment income.
- Keep records of your earnings, such as bank statements and pay stubs.
- Keep the same work for a long time to give the impression that your finances are steady.
Also Read: 10 Biggest Mortgage Myths You Should Avoid
Find-out About Mortgages:
Understanding how they function may assist you in selecting the best first time buyer mortgage offer for you, which might result in you finding a mortgage that accepts you and saves you hundreds of dollars.
You don’t have to be an expert to use our guides, and you can learn all you need to know for free. There are many types of mortgages available and how to choose which one is best for you.Begin researching the home-buying process as a first time buyer so you’ll know what to do after you locate a property you like.
Mountview Financial Solutions has a lot of experience in mortgage application management. Our knowledgeable and experienced mortgage brokers will be able to give you the best advice and level of security to meet your mortgage requirements. If you’d like to learn more about mortgage applications or how Mountview Financial Solution can assist you in meeting your needs, please contact us. You can call us at 02080950120 or give us an email at email@example.com with your requirements!