You are ready to buy your first home, fantastic. I thought I would offer some advice to you, things you may or may not have thought of yet. Many people want to buy a home and feel ready but don't fully realise everything that is involved. It's great to have your own home and invest in your future however a home is a massive responsibility to take on.
Replacing throwing away ‘dead' rent money with an investment is great but your home can be possessed if you can't keep the mortgage repayments up, planning is key to ensure you know what you are getting into and you make the right investment.
Demand certainly outpaces supply in the mortgage market. Mortgage lenders are willing to lend however only to those who are low risk. Your credit score is important; it's worth checking this before you start applying for a mortgage as they can be anomalies that could make the difference between approval and decline of a mortgage.
The most important mortgage advice first time buyers is to save! As lenders are now much more cautious with their lending and wish to reduce their risk, the larger deposit you have the more likely you are of being approved and at a lower rate of interest.
There are government schemes that help first time buyers get their first property. In Scotland there is the LIFT scheme where the government will take a equity stake in your property in return for putting up money. This scheme is aimed more for those on lower incomes but it is certainly worth looking into, there may be a different scheme in your area.
Use all the resources available to you, the internet is good for mortgage information, giving you explanations of term, calculators to help you work out what you can borrow and what you can afford. Mortgage brokers can offer very valuable mortgage advice to first time buyers, which many do without broker fees. You benefit from their market knowledge, assistance with applications, support through the process and help you avoid common mistakes.
Final piece of mortgage advice, don't just go to your bank for a mortgage, search around for the best value mortgage with the best terms for you.
