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Applying for a Mortgage in Stirling, Scotland

Information for first time buyers

In recent years, people have struggled to get onto the property ladder, but that doesn’t mean that it is an impossible task. If you’re currently trying to buy a home in Stirling, and you’re a first time buyer, there are several things that you need to know in order to make the whole process a smoother experience. This guide will help you to get the information that you need to make sure that you get the mortgage that you’re looking for.

What is your budget?

Knowing how much you have to spend is great, as it means that you won’t waste time looking at things that you can’t afford. Online calculators will tell you how much money you could borrow and what you can expect your repayments to be, so you could have a fair idea about your situation before you go to any kind of official meeting. Please note that online calculators only give you an estimate and you shouldn’t rely on calculator, its best getting proffesional advice.

Are you able to get a mortgage?

There are some people who won’t be able to get a mortgage application approved, for example if they are not currently in work, or if they have struggled with loan repayments in the past. If you don’t meet certain criteria, you may not be able to get a mortgage. However, all lenders look for different things in a customer, so it is worth exploring all options before you give up for good.

How do mortgages work?

A mortgage is just like a loan – but a much larger loan than any other you’re likely to get. Heres an example of two different types that you could be offered; repayment mortgage or interest only.

If you choose to go for a repayment mortgage, your monthly payments will pay off not only the loan, but also any interest that may have accumulated, too. This means that at the end of the repayments, you owe nothing more, and you own your home.

An interest only mortgage won’t touch the actual amount that you originally borrowed. It will only pay off the interest, meaning that you need to make other plans to invest into a scheme that will pay off the original loan amount at the end of the term. Lenders will usually want to know about how you plan to do this so that they’re sure you have provision to pay off the loan at the end.

When you have taken out your loan, you will begin making monthly payments. This may not be static for the whole term of the loan, as interest rates can change. You may have the choice to make larger repayments to get rid of the loan more quickly, but some lenders will not allow you to do this, and may add extra charges on top of your loan.

What should I look for in a property?

People often get carried away when viewing properties, as buying a home can be an exciting time. However, you should take care and ensure that you have everything you need from the property. There are many practical things such as the number of bedrooms and bathrooms, and the layout of the rooms with regards to the furniture you have, that you will need to think about. If you’re not sure what to look for, take somebody with you.

Surveys

You will need a survey done on your home, and seeing a solicitor is the best first step for this. This means that you’re not paying more than the property is worth.

How to put in an offer

Unless you are looking to move to an incredibly popular area, it is unlikely that you will need to pay anything higher than the asking price. It is normal to place a lower offer through the agent, and then wait to see if the buyers are happy with it. If they aren’t, you can decide whether to place another offer. If they are happy, the legal process will begin.

When buying a home in Stirling, it could take a lot of time and money. However, now that you have key information about the process, you should find that it is easier than it would have been, giving you the ability to enjoy this exciting time in your life.

Get in touch with us today and we will put you through to a local mortgage broker!