| Stepping onto the property ladder and buying a | | | | to borrow and how much you will the lender will |
| home for the first time can seem like a really | | | | give you. That way you will have a budget to |
| daunting prospect. You need to get the decision | | | | stick to when looking at properties. Some lenders |
| right because getting a mortgage is perhaps the | | | | will offer you a pre-approved amount, which can |
| biggest financial commitment you will ever make. | | | | help to speed up the house buying process. |
| Despite this, many people get a mortgage without | | | | Finding a property |
| really knowing a lot about the process. It pays to | | | | Once you have looked at lenders you should find |
| be clued up before stepping onto the property | | | | a property that meets your needs and falls within |
| ladder. If you know about the mortgage buying | | | | your budget. Once you have done this you can |
| process then you will get a better deal and find | | | | get a survey done and exchange contracts. |
| the right home for you. | | | | Things to look out for |
| The costs of a mortgage | | | | If you are new to mortgages, then there are a |
| Obviously the biggest cost of the mortgage is the | | | | number of things you need to look out for. Most |
| lump sum that you want to borrow and the | | | | importantly, do not borrow more than you can |
| interest on top of this. However, there are many | | | | afford. Although you may have seen the perfect |
| other charges that you need to think about when | | | | house, that house will be taken away from you if |
| getting a mortgage. Arranging the mortgage will | | | | you cannot meet the repayments. Do not be |
| usually cost a few hundred pounds, as will legal | | | | pressured into borrowing more than you can |
| fees. You also need to think about survey costs, | | | | afford either. Remember that the lender can |
| land registry costs and stamp duty. There is also | | | | recover their money through repossession and |
| the amount of down payment you are going to | | | | know that lenders will get into other debts rather |
| make, all of which can add up to making the initial | | | | than default on their mortgage. Work out a strict |
| process of getting a mortgage expensive. Make | | | | budget and do not go over that amount. Also |
| sure that you have all of these funds in place | | | | make sure that the mortgage terms you get are |
| before proceeding. You should be financially stable | | | | fair and that there are no hidden costs or |
| before even thinking about getting a mortgage. | | | | services that you don't need, like credit insurance. |
| Finding a lender | | | | Know the terms |
| Once you have worked out the costs of getting | | | | The last key to finding a good first mortgage is |
| a mortgage, you need to find the right lender for | | | | to know the terms involved in the mortgage |
| your needs. Shopping around to find the best deal | | | | process. If you know what to look out for and |
| is important, and looking at both online lenders and | | | | the things that you really need, then you can get |
| your local high street banks and mortgage | | | | a mortgage that will suit your needs and not cost |
| providers is a good idea. You should look at | | | | you too much money. All you have to do now is |
| lenders before you go house hunting, as you will | | | | find the right house for your budget. |
| have a better idea of how much you can afford | | | | |