Whether you’re a first time buyer or looking for your next home, buying a property is a huge commitment. This isn’t just financially either! Making your next big move up or onto the housing ladder takes up a lot of time and energy.
We’ve taken a look at some of the most common queries you may have while navigating your way through the housing market that will help you feel more prepared when you eventually make the move.
Which comes first - the mortgage or the home?
When you find your dream home, you want to be in the best position possible to put in an offer. However, without a mortgage in place, this can be difficult. The best way to prove you can put in an offer when the time comes is by acquiring a Decision in Principle.
A Decision in Principle, also referred to as a Mortgage in Principle, a Mortgage Promise, or an Approval in Principle, is provided by a chosen mortgage lender to show that they could offer you a mortgage up to a certain amount on a certain property. This is used to demonstrate to estate agents that you’ll be able to afford the property you’re interested in buying.
If you’re unsure about how much you’ll be able to borrow to buy your new home, then take a look at our borrowing calculator here.
How much can you afford?
Before you begin the property search, you’ll need to know what you can afford. This will help you manage your expectations and avoid disappointment later on!
Work out your budget in advance, so you have a good idea of which properties you should be looking at. It’s also important at this stage to consider other living expenses. You may just be able to afford your dream home, but you then need to factor in council tax, utility bills, and so on.
Identify potential obstacles
When it comes to applying for a mortgage there are lots of things that need to be taken into consideration.
For example, are you self-employed, or work on a flexible hours’ contract? If you’re buying with someone else, their income and credit history will be taken into account as well when working out how much you can borrow. Identifying possible issues early on will give your mortgage adviser time to sort things out and help everything go ahead smoothly.
We have a team of local, experienced mortgage advisers in Ripon who can search over thousands of mortgage products from 90 different lenders, helping find the right mortgage for you. There is no single mortgage that suits everyone; so our advisers take the time to get to know you and your individual circumstance, and ultimately find the right mortgage for you.
For a free initial no obligation appointment to get mortgage advice in Ripon, get in touch with us by phone on 01765 51923 or send us an e-mail.