A MORTGAGE broker has revealed her top tips for getting onto the property ladder – and it includes checking your credit score.
Buying a house is hard – from scrimping and scraping enough cash needed for a deposit, forking out for fees and moving costs, and biting your nails over finding the dream one.
A mortgage broker has revealed her tips on how to get onto the property ladder
But one mortgage broker has taken to TikTok to try and make the whole process easier with four top tips for becoming a homeowner.
The expert, who has the TikTok username tess_mortgage_advisor, said first-time buyers should first speak to a mortgage broker.
Mortgage brokers help arrange a loan between you and the lender.
She advised her follower to speak to an expert as they “will know the best way to help you”.
Brokers help by helping you work out your financial situation, find the best deals, and also highlight help available to you – such as Help to Buy or Shared Ownership schemes.
Next, she said budding buyers need to save their funds to bag their home.
Those looking to become homeowners might not know there are “hidden” costs associated with buying a property.
It’s not just a deposit you have to save up for – which is usually at least 10% of the value of the property – but other stuff too.
Tess said that you need to save up for valuations – which is the process of getting an estimate of how much the property you want to buy actually is – as well as solicitors and broker fees.
She also said you need to have enough saved up for a survey.
This is when an expert takes a detailed inspection into the condition of the property and can cost up to £900 or even more.
But fail to get one sorted and you could could end up paying tens of thousands of pounds more to fix the issues – like this first-time buyer did.
Tess’ third tip is to check your credit score “to make sure there are no ‘surprises’ that you were not aware of”.
Your credit score shows how well you’ve managed your borrowings over the last six years, and lenders use it to calculate how risky it would be to give you money.
It can help or hinder you from getting a mortgage – and if it’s low, you may find it more difficult to get a loan.
The mortgage guru also told her fans they should consider taking out a Lifetime ISA (LISA).
Anyone between the ages of 18 and 40 can open a Lifetime ISA and it can be a good way of saving for a first home or to put money away for retirement.
You can put in a maximum of £4,000 a year until you’re 50, with the government paying in an additional 25% bonus – or £1,000 annually.
What other things should I be aware of buying a house?
If you’re looking to clinch a deal on a house you’ve spied, it’s a good idea to get a mortgage in principle.
With the property market still hot with buyers looking to bag a home of their own, estate agents may be more likely to ask you if you have a mortgage in principle.
This is a statement your lender has written agreeing that they will lend you a certain amount of money for your home – even though the deal has not yet been completed.
It shows lenders that you are in a position to buy – giving them more certainty that you are not as risky to lend money to.
Planning to switch jobs? You may want to hold off on this until you’ve bagged your home.
It could affect the chances of you getting a loan if you’ve moved to another company, because lenders may question whether you can afford the loan repayments due to your change in situation.
Remember that first-time buyers don’t have to pay stamp duty on properties worth £125,000 or less – even though the relief has ended.
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