At what stage of the house buying process should I think about getting a mortgage?
The list of formalities that appear when you purchase a home seem to be endless. Read on if you want us to help simplify this for you!
For those of you who are wondering when in the house buying process that you should start thinking about a mortgage, the answer is as soon possible! How can you start looking for your dream home if you are not 100% sure how much you can borrow & who will take you serious when making offers on houses if you cannot prove that you can raise the money to complete on the purchase.
The Mortgage Process
What will I be able to borrow?
In the offing of your mortgage process you’re going to need to know what you can and can’t afford. Lenders now use various algorythms to access your affordability, with each one accessing income & expenditure slightly differently which means what each lender would be willing to offer you as a maximum amount varies wildly.
Mortgage lenders are going to conduct an affordability assessment as well. This is going to take into account other factors such as your expenditure and credit score to help them work out whether you’re going to be a responsible borrower. This will then influence the amount that they let you borrow and the interest rate that you pay, if they let you borrow at all! So, we recommend that you make sure your credit score is up to scratch and that your recent expenditure isn’t too extravagant.
Why should I think about getting a mortgage at the start of the buying process?
If you haven’t found out already, getting your head around the mortgage process isn’t exactly the easiest thing in the world. This is why it’s so important for you to do your research on what the mortgage process involves. So, by the time it comes round to start your application, you’ll seem like an old hand!
When you’re looking at what home to buy, you’re going to need to know what your budget is. This’ll have a huge effect on the type of property you look at and its location. So, make sure you do your homework! Before you start viewing properties, your estate agent may require you to provide an agreement in principle from your chosen lender. This is basically an agreement where the lender will tell you how much you can borrow from them.
Once you have this, you can finally begin you finally start the hunt for your new home! Once you make an offer on a property you will then begin your mortgage application. This is where you’ll need to provide your credit history, outgoings and income before your lender agrees in a contract to lend you the money for your home.
What we can do:
If you’ve got any more questions about the mortgage process then don’t be afraid to drop us an email or check out some of the articles on our site. Our team at Mortgages Online can help you find the best mortgage deal all at the price of £0. So, what are you waiting for?
Whether your first-time buyers or looking for information on mortgage payments and stamp duty, MO has got all the info you need. In our articles section, we have a wealth of information about everything you’ll need to know in the mortgage process. All of this, for free. No credit card needed!