Hello, Anthony here for Bolt Mortgages. Today, we'll be talking about the mistakes that first-time buyers make and how we can avoid them.
This can be a massive waste of your time. You can spend weekends after weekends looking at different properties, finally getting that house that you fall in love with, only to be disappointing to find out its way outside of your budget. On top of that, finding out how much you can get agreed for and speaking to a mortgage advisor to get an agreement in principle before looking also puts your best foot forward when you want to make offers on properties. The reason being for this, let's say you're selling your house, somebody makes an offer on your property that's 250,000. That person's got their mortgage in place, they know which solicitor they're going to use and the second person who makes the offer for 250,000 has not spoken to an advisor, has no proof their mortgage has been agreed, doesn't know which solicitor they're going to use. Whose offer would you accept?
As well as the new monthly mortgage payments you have to pay when you get your first property, there are a lot of other things that people forget to budget for. You have to budget for your insurances, you've got your buildings and contents insurance, your life insurance, your income protection. You need to sit down and budget for your council tax. You're also responsible for paying your bills, gas, and electricity. In a meeting with a mortgage advisor, they'll be able to go through the full ins and outs of your budget and find out exactly how much your outgoings are, so you can gauge how much it is you can borrow and how much you can spend on your mortgage, depending on what your outgoings and expenses will be.
A lot of people join the term of their mortgage process in their mortgage applications. It can take sometimes up to three months for you to pick up the keys once your offer has been accepted. Unless it's vitally needed, do not take out any further credit until you pick up the keys. There have been instances in the past where somebody's mortgage has been agreed in for principle, that offers being accepted on a property. And during the time for them having their offer accepted and picking up the keys, they would've taken out credit cards, personal loans, taken out cars on finance. If a lender does a credit check right at the final stage, it can mean that the whole application and mortgage process will fall through.
This is going to be the biggest financial commitment and probably the most expensive thing you're ever going to buy and you're going to buy it after seeing a home for only five minutes. I know people that have spent more time looking for pairs of trainers. If you like the property, and you can see this being your next home, it's always worth taking somebody else around there with you, preferably someone that's bought a home in the past, such as a parent, uncle, or a friend. Not only that, but going around the property the second time, you tend to notice things that you didn't pick up on the first time, like any issues or anything that you need to repair or get sorted before you move in.
Mortgage brokers in Essex providing advice and services designed to save you time (and a few headaches!).
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