Getting a mortgage can be one of the biggest financial decisions that you ever make. It goes without saying that you’ll want to find the best deal possible.
There are many ways for you to get the best possible deal. Here’s how:
1. Consider Your Credit Score
The mortgage you end up getting will ultimately be affected by your credit score. Ideally, you should know what your credit score is. If your score isn’t great, there may be some mortgage providers who are happy to help you.
Regardless of your credit score try to opt for the best mortgage providers as they may offer some great deals.
2. Work Out What You Can Afford
You will need to make sure you can keep up with your monthly mortgage payments. Work out what you can realistically afford to pay.
Consider the following:
- How much your monthly income is
- What your savings are
- How much your monthly outgoings are
- How long you want the mortgage to last for
When you have the above figures you’ll know what you can and can’t afford.
3. Pay Off Your Debts
Do you owe a few hundred dollars on your credit card? Pay it off now. Lenders won’t want to offer you a mortgage if you’re in debt. Pay off or reduce your debts.
The less money you owe the more likely it is that your mortgage application will be accepted.
4. Make a Deposit If You Can
If you can put a deposit down, do. The more money you pay now, the better it could be for you.
Some lenders offer their best rates to those who put a deposit down. They may also offer lower monthly rates.
If you cannot put a deposit down, find a mortgage lender that is OK with this. Not everyone can afford to put a deposit down, and many lenders understand this.
5. Stick With The Same Job For Now
While you might be tempted to switch jobs, now is a good time to stay where you are. Mortgage lenders like this because:
- You can show you’re in employment
- You can show that you have a regular income
- You can show that is relatively safe to lend you money
If you really want to change jobs, do so once you’ve moved house. Your prospective lender won’t mind as long as you can continue to make payments.
6. Shop Around
Some mortgage lenders will offer you what looks like a great deal. However, the interest charges may be high. Other lenders could offer you reduced monthly payments but you need to make a deposit first.
Shop around so that you see what is on offer. Some mortgages may be more suited to you than others. Do your research so you’re more likely to find a deal that works for you.
Use the above tips to help you find a mortgage that’s right for you. Remember, you could have a mortgage for 20+ years, so take your time and do what you can to find a good deal.