If you’re buying a home, you may be excited about the time that you have ahead of you, however there is also the chance that stress may be encountered along the way. The financial aspect of buying a home can seem daunting at times, particularly when you’re considering where to borrow the money for your home from, but this guide will help you to understand mortgages and where to start. So, if you’re excited about buying property in Sterling, you might be closer to your dream than you realise.
What to think about initially
Understanding what you actually need, and how much money you need from your lender, is vital, and this is information that potential lenders will need to know right from the beginning of any discussions. Researching your options with regards to what’s available will be helpful, and will make any conversations with lenders easier to understand.
There are a number of things that will be factored into any agreement, including your salary, your current outgoings, and your general life situation, as this could affect the amount that you could afford to pay back on a monthly basis. If there is anything likely to change in the future, perhaps your job role, your lenders will need to know this, too. Be aware that the price of repayments that you are quoted may not always be solid, as interest rates can affect them.
If you are putting down a large deposit on your property, the rate you are given will be much more reasonable than if you only have a smaller amount to pay upfront. There are costs to pay throughout the process with regards to the legal aspects, so not all savings will be able to be placed as a deposit.
Getting your mortgage
For the past couple of years, FCA registration has been a requirement for those wishing to offer mortgages. This is due to the rising number of people who were being given mortgages that they couldn’t afford – so now it is more likely that your advisor will offer you a deal that you can comfortably pay in addition to your other outgoings.
Here are two different examples of types of mortgages that you could get. There is the choice of a repayment mortgage, which is where the loan amount is fully paid by the end of the process, or an interest-only mortgage, where the original amount would still be owed at the end of the term. If you choose the latter, another investment choice must be made to ensure that you have the capital to repay your loan at the end of the process.
With regards to who to ask for help, the following will be able to assist you during the process:
– A mortgage broker
– A financial advisor
– Your Bank
If you don’t get your application approved
Not everybody is successful on their first attempt, and there can be many reasons for this. Asking the lender why they rejected your application could help. Different lenders search for different things when making a decision, though, so just because you’re rejected by one doesn’t mean they will all make the same decision. Persevering could mean that your dream home in Stirling is just a step away.