Last year my partner and I were able to buy our very first home thanks to the team at Accelerate Mortgage, but I must tell you that it was not easy by any stretch of the imagination. The whole process was hard not because the guys at the company weren’t great, they were brilliant, but rather because of how little I knew going in. There was so much that I have had to learn about mortgages and that is why I wanted to write something today for anyone out there who is thinking about getting their first mortgage and wants to know a little bit more.
Here is what I learned during that process, I hope it helps.
Checking Your Credit Rating
All of us have a credit rating which is the score that we are given based on how secure an investment we are. This is made up based on the way in which we have handled credit in the past, and based on the amount of money that we earn and the credit that we have outstanding. What this credit score means for mortgage companies is that they understand exactly how much they can safely lend you. If you don’t know your credit score yet then check this out before applying for mortgage so that you don’t face any rejection when you try to get a mortgage in your name.
Understanding The Interest
Don’t just jump in for the first montage that you are offered, if you do this then you will find that you maybe have agreed to a much higher term or a much higher amount of interest. There are a number of different mortgages which you could look at here, and that is why it is important to weigh up different terms and interest rates in order to get the best for you.
There are two requirements which you should look to have in your mortgage contract, the first is that you have the chance to take a mortgage holiday should you need it. This means that you get the chance to enjoy a couple of months without paying the mortgage, so that you can deal with any unforeseen financial problems. Secondly you should make sure that you can overpay your mortgage, if you are having a particularly good time of it financially.
And finally it is absolutely critical that you ensure that you have the largest deposit possible so that you will be able to reduce the term and the interest rate on the mortgage. Lenders love it when you come in with a big deposit and that is why I would suggest that you do all that you can to get a large deposit together, even if this means borrowing from friends and family, which of course would be interest free.
This is what I learned during the process and I certainly hope that it helps some of you in securing your own mortgage.