Moving Home – Find important information of things to do before taking out a mortgage
A mortgage is often described as the biggest financial commitment of someone’s life. This is because mortgage repayments commonly on average span a 20-30 year period, and is usually the biggest single purchase anyone ever makes.
A mortgage can also be described as ‘overwhelming’ or ‘mind-boggling’ due to the shear magnitude and range of mortgage products on the market. Terms and conditions of mortgage products varies provider to provider and not many people know that is not only banks that supply mortgages, other sources such as building societies and specialist lenders can also offer loans for mortgages.
Although getting a mortgage can be compared to navigating through a minefield, it is not an impossible mission and it is pleasing to now that thousands of people have successfully secured mortgages over many years.
So if you have ever dreamed of becoming a homeowner and being able to put the key in the door and step into a place you can call your own home, there is no good reason that, that dream cannot become reality. With the right mindset, tools determination and preparation, ‘that key’ may soon be yours. Below MnM Removals have listed the main factors to consider before embarking on your mortgage journey and ultimately having that key in your hand, they are as follows;
Credit report and score
Your credit rating plays an important role when searching for a mortgage. When looking for a mortgage for you new home, you will have more options the better your credit rating is. So make sure your credit report is in tiptop condition by making sure it is accurate and up to date and all outstanding payments are made on time.
You need to account for additional costs associated with getting a mortgage. Not only is a deposit required in most cases there are other costs to account for, solicitors/ conveyances, surveyors fees and stamp duty. Please ensure these fees and the deposit are covered, before you make a mortgage application.
Saving a deposit
We recommend you save as much money as you can for your mortgage deposit. The more money you can save as a deposit the more chance you have of getting a mortgage. This is because the larger your deposit is, the better deal you will get. It is also the most important factor in determining what your mortgage rate will be.
We recommend that you work out your budget and recheck this several times, in order to see if you are able to meet your mortgage repayments and to make sure you don’t forget any costs you may have missed. Comparison websites can give you a good starting point and can indicate how much repayments on different mortgages will be from the start.
Ongoing Future Costs.
When searching for a new home and looking for a mortgage we suggest that you determine whether you will be able to cover all mortgage repayments in the years ahead, because your repayments can fluctuate as interest rates vary over time. Also think about what you could and would do, should your circumstances change in the future.