Whenever you desire to purchase a home and it is your first time, the procedures involved in house purchasing and mortgages may appear complex. This is because you may not know ways of identifying the house or going about the mortgage process. Nonetheless, by using the following points about first time buyer mortgages, the procedure will not be a complex one.
You need to look into your financial statements when you want to get a good mortgage lender or deal. Your financial statement should bear proof that you get a steady salary within the last five years. Working with the same employer for more than five years will add more weight to your financial statement because you will be deemed to be consistent.
Besides having a good financial statement, you should have a positive credit score. Therefore, it is important that you clear with all your creditors before applying for the mortgage. This also applies in clearance of your utility bills. You should ensure that you have a clean credit score since if there are any errors you will reduce your chances of getting a house loan.
Additionally, you need to have a current credit report that you will present to the lending institution. The credit report should state how you have been clearing your bills. For the process to be smooth, you should make certain that there is no error in the report. A report that will state you normally make late payments will give a negative impression to the lender.
After presenting your financial statements and credit report, you must do an application for a pre-approval. Pre-approval is the procedure whereby the lending institution examines your income against your credit record. The rationale to this is that mortgages for first timers need little deposits or none. Therefore, the process would establish the amount you quality to borrow.
When you know the amount that you qualify for borrowing, you should then shop around for a house to purchase. This way you will select a house of choice depending on the cash that you have at hand. As a precautionary measure, you should not select a house that will require much repairing or remodeling because many mortgage institutions are not willing to purchase such houses.
Before concluding the first time buyer mortgages agreement, you must ensure the agreement is crafted in accordance with the law. This would assist you in avoiding any future disagreements between you two. Therefore having the loan repayment terms in paper would be important.
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