Get mortgage ready with s1homes

House on A Financial Graph

For most of us, buying a home is the biggest purchase we’ll make in our lifetime, so it goes without saying that preparation is key, especially when it comes to securing funds to make that life-changing purchase.

In the absence of a huge lottery win or another windfall, financing your new home will no doubt take the form of a mortgage, which means you’ll need to make sure you’re financially ready. Luckily, s1homes is here to help with our easy steps to get you on the property ladder.

Start by doing your sums

No matter what mortgage lender you opt for, they’ll want to check your affordability, to ensure that you can make your payments comfortably and assess any financial risks. Start by making a list of all your current incomings and outgoings. This means your wage and any other payments you may be receiving, if you’re going for a joint mortgage then you’ll need to include your partner’s income too. For outgoings, include everything. This means any direct debits, standing orders, bills and even amounts that you set aside for savings. Remember to estimate food costs, shopping essentials and clothing, money for socialising and anything else. Your mortgage lender will normally request at least 3 months’ worth of bank statements so they’ll be able to see all of your outgoings anyway but its good to get an idea yourself of what you could afford to pay.

Once you’ve compared outgoings versus incomings, you’ll have a better idea of what you could comfortably afford in mortgage payments each month. Remember this is just to give you an idea, your lender will be more accurate.

Build up your deposit

The amount of deposit required for a mortgage can depend on the lender and your affordability rating but it’s best to aim for at least 15% of the total property price. So if you haven’t already, it’s time to start saving. It’s worth going through your current outgoings and seeing if there’s any areas where you could cut back. Try doing a ‘no spend’ month, cutting out any luxuries like clothes and takeaways – you’ll be surprised how much you can save just by deleting the Just Eat app from your phone!

Check your credit rating

A good credit score will go a long way when it comes to being approved for a mortgage. If you haven’t already, check your score by signing up to an approved credit checker site such as Experian. They offer a free service which will give you a credit score out of 100. They’ll ask for things like current and previous addresses, job history and details on existing loans and finance that you may have. It will reveal any outstanding credit you already have and any issues that may result in a low score that can affect your chances of being approved for a mortgage.

One area that can cause issues with your credit score but is an easy fix is making sure you are on the electoral roll. If you’ve moved home and your electoral roll information is at a previous address, this might flag as an error so make sure you keep that updated as you move.

Get all your paperwork in order

If you’re preparing to meet with mortgage lenders, then it’s time to start getting your paperwork in order. Most lenders will ask for basics like bank statements, payslips, utility bills and of course, identification and national insurance number. They’ll also want to know how much you have in terms of deposit and how long you’re looking to take the mortgage out for. It’s best to have all of this prepared in advance of your appointment.

Talk to the professionals

Whether you’re a first time buyer or experienced in property buying, take advice from the experts. If you’re confident to go on your own, you can speak directly to mortgage lenders and a lot of the leg work can be done online. If you’re a bit unsure, speak to a mortgage advisor who will be able to find the best fit for you. They may also have access to great rates that you may not have been able to find on your own or be able to help if your credit rating needs improvement. Many estate agents offer this service for free so take advantage of any free advice you can get.

Once you’re mortgage ready it’s time to start finding your perfect home. Start your search at s1homes today.

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