Are you taking a leap of faith and making a significant financial decision in your life by buying your first home? It surely is an exciting time, but at the same time, it can be nerve-wracking. Purchasing a house is one of the single biggest purchases you will make in your lifetime. Below mentioned are the do’s and don’t’s of a first-time home buyer loan:
1. Find ways to save moneySaving money is key to getting a great deal on your mortgage. Saving for a larger deposit gives you access to the best lender’s rates. Additionally, most lenders will also offer incentives to take out a loan from them. Find deals such as free legal work or free valuations that can help you end up saving hundreds and thousands of dollars.
2. Consider all your costsA major mistake that most first-time home buyers make is failing to consider all the costs related to purchasing a house. Concerning mortgages, you should consider the interest rate, and the fees, including the total cost of your mortgage. By doing your due diligence and shopping around, you could save a buck or two.
3. Take a look at your credit historyWhen making a life-changing decision like purchasing a house, you must take a look at your credit score and history to see if your mortgage application will be approved. If your credit history is not the greatest, you can improve it before you decide to apply for a loan.
4. Find a good solicitorA good solicitor will give you a complete breakdown of the costs involved in the purchase of the property. However, you must be aware of what the solicitor will do for you as part of their fee.
5. Ensure all the necessary paperwork is in orderPurchasing property involves a lot of paperwork. If you do not have all the required documents, it can hold up the home-buying process. The following documents include:
- Bank statements
- Utility bills
- Address proof
- Photo identification