Whether you’re a first time buyer or not, looking for a mortgage is a highly stressful and sometimes confusing task for most people. It’s such a minefield that for some, it’s more stressful than divorce! Because the property markets change so often and sometimes almost overnight, the prices and types of mortgages which will be available to you will also change. You need to be clued-up and aware of what you are getting into before you commit to possibly a lifetime of repayments.
Ask yourself lots of questions before you take out a mortgage and speak to a financial advisor too. There are certain things which you should and should not do when looking to find the best mortgage for your needs and a definitive list follows!
1: Don’t quit your job. Not for anything! Your job is all you have in terms of financial stability and no matter how much you think you might be able to improve your situation, doing it whilst looking for a mortgage is a terrible idea.
2: Taking on more credit. Don’t go there…don’t take out any more credit cards, loans or other forms of credit as you’re not doing your credit file any favours and lenders won’t like that you’re so blasé. Keep a close eye on what you already owe and ensure that you’re paying it all back on time!
3: Don’t close any credit accounts you do have. If they’re being well managed they’ll only up your credit score. Keep track of what’s going in and out and maintain payments with scrupulous attention to detail.
4: Don’t make any major changes such as shifting loan providers or moving large sums of money unless it is absolutely necessary. Loan providers like to see consistency; if you are making lots of financial changes they will be concerned as to your plans and your ability to manage your finances when buying a home.
5:Don’t get a divorce. Obvious as this may sound it’s not a good idea to look for a mortgage at the same time as your divorce is going through. Divorces can be costly and disruptive to your income and expenditure.
6: Don’t take the advice of friends. Of course friends might have some good advice but equally, unless they are professionals they might have terrible advice. Read up all you can about finances and get to know the terminology yourself. Learn all you can about the process so that you’re well informed and make an appointment with a professional financial advisor.
7: Don’t take the first mortgage you’re offered immediately. Think about it carefully and consider it with due care. A mortgage is a huge commitment…do you really want one?
Mortgages are the key to owning a home but they’re also a massive commitment. Taking out a loan…which is essentially what a mortgage is, is a lot of stress and of course you need to be able to make the repayments. So before you commit yourself, be sure that you are able to commit to it fully.