Mortgage

Are You Buying a Home for the First Time? Here’s What You Need to Know

0 44

First-time home buyers can be understandably uncertain or confused as to what steps they should take when it comes to purchasing their dream home. But if you’re a first-time home buyer, you simply need the right information to help you along your way. So, what can you expect when you are planning to buy a home and are thinking of getting a mortgage? Here’s what you need to know.

The deposit

The deposit you can save or borrow will be crucial since it will affect the kind of mortgage deal you will get, how much you will have to repay every month and the amount of interest which will be charged to you with your mortgage. You need to make sure that you already have a deposit before you begin checking out different properties. In general, you need about 5% to 20% of the total cost of the property you want. For instance, if you are interested in buying property worth £150,000, you would need to save a minimum of £7500 in order to come up to 5% of the property’s value. If you can, you should save more than 5% – if you have more than 5%, you will have better access to a broader selection of more affordable mortgage products.

The costs

The cost of purchasing property does not just end with the deposit. Far from it. There are other costs you need to consider, and you need to have the budget for this as well. These costs include the survey cost, the fee of the solicitor, the cost of building insurance, the mortgage arrangement fee and the valuation fee, and other costs such as decorating and furnishing expenses.

 

The repayments

You should carefully work out how much you can really afford to borrow when it comes to your mortgage, as this will affect how much you have to pay every month. Make a list of your expenses and your income and calculate how much you can afford to pay each and every month. You should also think about possible situations in the future, such as if you make a change in career, if you become redundant in your job, if you become ill, or if you decide to have children. Will you be able to pay your monthly mortgage bill then? It would actually be a good idea to make a plan for this, such as trying to save enough money to last you for 3 to 6 months if such situations arise.

The mortgage

There are definitely a lot of mortgage deals around, and this is where it can actually get a bit confusing. Your best bet would be to speak to a mortgage expert such as those from mortgage-wise.co.uk so you will know the options available to you and you can understand the different kinds of mortgages more easily. This way, you can make a better, more informed choice.

About the author / 

WebEditor

Leave a reply

Your email address will not be published. Required fields are marked *

× nine = ninety

POPULAR The most recent

  • Tips for Finding a Reputable Payday Lender

    Payday loans offer a fast and effective way to get cash in an emergency situation. However, it is important to note that not all payday lenders are created equal. Because of this, you need to find the right lender for your needs. The good news is, there are a few tips you can use to…

  • 3 Reasons Your Small Business Should Use a Payroll Service

    Do you own a small business? If you do, you know just how busy this job keeps you. Helping customers, marking for new clients, sourcing for low-cost suppliers and managing your employees are just a small portion of what you do each day. If you are looking to lighten your load, here are three ways…

  • Guide on How Businesses can Simplify Different Types of Payouts

    Every business needs a well structured financial management plan to successfully implement its goals. Businesses not only need to focus on the cash flow but, crucially making payouts is also an area to excel. What is a Payout? The expected financial return from a business, company or investment within an expected amount of time is…

POST TAGS

LATEST COMMENTS

    Find Us on Flickr

      GET IN TOUCH

      Mortgage Advisor Help is article directory operate by Peter a blogger and the content writer. Have a flair for writing Advertising, Blogs for Business, Mortgage, Loans, Fame, Marketing, articles and want to have it read by readers who share the same passion and interests. Feel Free to contact for any Question using our Contact Form.

      Stay up-to date with the latest news and other stuffs, Sign Up today!