For first time buyers, their number 1 priority is usually getting a great deal on their dream home.
They may not be able to afford a 4 bedroom palace straight away, but it’s good to aim for a mini palace with at least 2 bedrooms. There’s no set price for a house, even if it’s advertised at a certain price on a website.
There are many ways you can get a great deal, from ensuring you get the best mortgage to having an offer accepted on a house.
Read on to learn more:
Make Sure Your Finances are Under Control
The first thing you need to do is make sure your finances are under control.
You won’t even be considered for a mortgage if it looks as if you can’t manage your money very well. You should have money saved, and avoid spending all of your money each month.
Don’t live on the edge of credit either, as this will look as if you’re struggling. Even if you’re not, you must think about what it’s going to look like to somebody inspecting your finances.
Improve Your Credit Rating
By making sure your credit rating is in top form, you’ll get a better mortgage deal. You can do this by making sure you pay all of your bills on time, that you haven’t got any outstanding debts, and that there are no mistakes on your rating.
Mistakes can happen, so make sure you dispute them. If you’re struggling to pay your bills on time, reduce them by using tips like this.
Shop Around for a Mortgage
Shop around for mortgages if you have the option. Different lenders will offer various benefits and features, so you’ll need to weigh up which one suits you best.
Save Up a 20% Down Payment
The bigger the deposit you can save up, the better! First home buyers in Gorleston must do this, as the houses there are luxurious with prices to match.
Saving up a big deposit is beneficial for you in a number of ways. Not only will you end up paying less money back each month, it’ll also look much better to lenders. They’ll think that you can handle your money and are good at saving up when you need to.
If you can save up a 20% down payment for your mortgage, you will save money by reducing the interest you pay long term. You will often get a lower interest rate with at least a 20% down payment. Finally, you will also avoid having to pay private mortgage insurance, or PMI.
Have a Cash Cushion
As well as your deposit, you need a cash cushion behind you. It’s recommended you need at least 6 months worth of money to live off behind you, so you can survive if you were to lose your job or your circumstances were to change.
The bigger this emergency fund, the better! It’ll give you peace of mind too.
Speak to a Mortgage Broker
A mortgage broker can give you great advice and point you in the right direction. Once you’ve given them all of your information they should be able to help you decide on the right route for you.
Put in a Solid Offer
Put in an offer on your dream home that fits with the current market. In recent years, it has been a seller’s market, which means that there is often a bidding war. Houses are selling for well over asking price and there is a lot of competition.
In this case, make the strongest offer you can if you really want the house. Offer the highest that you can afford, but make sure you don’t stretch yourself too far. By having good credit and a larger down payment, you’ll also look more attractive to the seller.
In other times, it can be a buyer’s real estate market. This means there is more housing supply than demand and buyers have more leverage. In this case, you can offer less that the listing price to begin with. There’s always haggling involved when buying a house, and you may be able to get it for at least a few thousand cheaper.
