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Newry Homebuyers Mortgage Guide

The prospect of purchasing a house for the first time can be so daunting that it is tempting to either continue to rent or just settle to the first place you come across within your budget. To help ease the process and get the most of out of your purchase we have listed some of the most important things to consider in this guide.

Considerations To Make Before The Purchase

The first thing you will want to determine is your long term goals and how owning a home matches those objectives. Some individuals are simply looking to convert those apparently wasted payments in rent into mortgage payments that give them something actually tangible. Others view house ownership as a way to gain independence and enjoy the prospect of being their own landlord. So, narrowing down your long-term homeownership goals will put you on the right path. That being said, here are some important things to consider:

What Kind of House Matches Your Requirements?

When buying a residential property, you have various options including a conventional single-family house, a townhouse, duplex, condo, multi-family building with various units or a housing cooperative. Every option has its ups and downs, depending on your goals and so, you’ll need to pick one that helps you meet those goals.

What Features Are You Looking For?

While it is wise to retain some flexibility when it comes to this aspect, keep in mind that you are making one of the largest purchases of your life and so, you deserve a house that fits both your needs and wants. Your features list needs to have the basic desires like size and neighbourhood, all the way down to the small details such as the kitchen layout, furnishings, etc.

How Much Mortage Do You Qualify For?

It is always vital to know how much a lender will be willing to give you to buy your first house before you start the hunt. You may think you can afford a £200,000 house, but financial institutions think you are only good for £100,000 depending on various factors like how long you have been at your current job, your monthly income, and how much other debt you’ve accrued. As such, it is imperative to have your personal finances in order.

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In order to qualify for a mortgage, you need to have a good credit score and a history of paying your bills in time. Ensure you get pre-approved for a home loan before you put an offer for a house as most sellers won’t tolerate an offer that is not accompanied with a loan pre-approval. It’s ideally wise to shop around for a financial institution and compare the rates and fees with tools like mortgage calculator online.

After settling on a lender and have completed the application, the lender will verify all the information that you have provided. At this stage, they can pre-approve you for a certain amount. However, be aware that even if you’ve been pre-approved, the home loan can fall through later if you do something that changes your credit score such as financing a vehicle purchase.

Do You Have Adequate Savings?

Even if you qualify for an adequate loan, there will be substantial upfront costs such as the down payment and closing costs as well. As such, you need to have funds to put away. In regards to investing with the goal of buying a home, keeping your savings in an accessible and relatively safe platform that still affords a return is one of the biggest hurdles. If you have 1 to 3 years to reach your goal, a certificate of deposit can be a feasible option. It will not make you rich, but you are not going to lose money either. You can ideally apply the same idea to buying a bond or even a fixed income portfolio that will give some growth while protecting you from the volatile nature of stock markets.

Who Will Help You Find a Home and Guide You Through The Buying Process?

When it comes to finding and buying a home, a reputable real estate agent is your best friend. Once you’ve picked a house, the specialists can help you in negotiating the whole buying process including making an offer, acquiring a loan and even completing the paperwork. Their expertise can protect you from any pitfalls that most first time home buyers face.

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