Buying a new home means taking on a huge financial commitment. Sometimes this can seem quite daunting for first time buyers so it’s important to try and avoid the common mistakes when they first hit the market in search of their dream home. Here’s our guide on how to avoid the common ones:
1) Not getting a decision in principle first
For those of you who don’t know, a ‘decision in principle’ is a certificate from your mortgage provider which shows how much they’re willing to lend you. It is not a contract so the actual amount may vary still. They last for between 30 and 90 days.
Whilst it isn’t an official offer from your lender, it gives you an accurate idea of what your budget will be, and can reassure sellers and estate agents that you are a serious buyer and can realistically afford the property in question.
Failing to get a decision in principle could lead to disappointment further down the line, especially if you fall in love with a property and then find out it is out of your budget or your offer is not taken seriously.
2) Underestimating how much it costs to buy a home
This is an extremely common mistake among first-time buyers. Even though the property will be the biggest expense, the cost of buying a house includes much more.
Additional costs that you’ll need to be aware of are things such as; solicitor fees, getting a valuation if it isn’t included as part of the mortgage, house survey costs and conveyancing fees. Luckily for you, Mortgagez doesn’t charge a fee for our service when you go via our portal to help find and secure you the best mortgage deal. However, there are some mortgage brokers who will charge you a fee to find and obtain a mortgage, and some aren’t cheap.
It is therefore extremely important to calculate how much you’ll need to have saved in order to cover all of these additional costs so you aren’t caught out financially.
3) Underestimating how long it can take to secure a mortgage
Unfortunately, there is no definitive timeline we can give to getting your mortgage application approved. Whilst it would be great if a mortgage offer could be done in a matters of hours or a day or two, it can take up to 3 to 4 weeks assuming all is well with the application but maybe even longer if there are any issues raised by the lender.
Here at Mortgagez, our team of fully qualified mortgage advisers is on hand to help you every step of the way in obtaining a new mortgage and guiding you through your application. Better still, our service won’t cost you a penny when you go via our online portal. Visit our website today and obtain a quick quote with our online mortgage rate tool to see how much you could save on your next mortgage.
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PLEASE NOTE: Article written 27th January 2022. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. *
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages. Mortgagez is authorised and regulated by the FCA no. 828291.
Article written: January 2022
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