Taking out a mortgage is the biggest financial decision that nearly all of us will ever make. It is an exciting time in everyone’s lives because it means that you will about to get the keys for your first property, a place that you can truly call home. It is not a decision that should be taken lightly because you will most likely be paying off your mortgage for around 20 years.
If you want to get a good idea of how much you will have to pay back in monthly instalments for the amount you need then take a look at a mortgage calculator, it’s easy to find them online. I advise everyone to take a look at your budgeting software so that they have a realistic idea of how much they will need to budget for each month.
I know that it can be a nervous time but I do not regret it at all, having a family home of my own is one of the best decisions that I ever made. I was lucky enough to get a mortgage a few years ago when buying my first house, throughout the whole process I learnt a great deal. Here are some of the most important things that I think first time buyers should consider before taking out their mortgage.
- You should only think about taking out a mortgage if you are fairly confident that your monthly income is going to continue and not decrease.
- Before you begin your search for your home you should find out how much it is that you can borrow, knowing the amount hat is going to be available to you will help the process of short listing potential homes.
- I would always advise people to only borrow what they can realistically afford. Take a look at your income and the amount you currently pay for rent, then decide what you can afford to pay monthly and still enjoy a good standard of living.
- The type of mortgage I took out came at fixed rates; if you fix the rate that you will pay back each month then there is no chance for you to have an increased amount to pay back each month.
- You will often be offered some fantastic introductory rates, but you need to look closely at the rates that will apply once these rates come to an end.
If you follow the above tips then I know that the mortgage process will be a lot easier. The thing to remember is that at the end of all the hard work you will be the proud owner of a new home! Happy house hunting!