You Must Read This Before You Get a Mortgage

Mortgages aren’t the easiest things in the world to get to grips with. But it’s essential that you get to know a bit more about them – preferably, before you even start to think that you might need one in the future! The better prepared you are, the better. So here’s a quick guide to making sure you’re ready when the time comes.

Shop for the mortgage first

A lot of people make the mistake of looking for the home they want first and then applying for the mortgage. That seems to make sense, right? Problem: let’s say you find your dream home. It’s a beauty. Pool, cinema room, lovely neighborhood, and at a good price. That sort of home is going to have a lot of people interested. So you go and apply for a mortgage. But someone else who already has their mortgage approved wants to make an offer. Difference between you and them: they can give the seller the money pretty much immediately. You’re going to lose the house.

Destroy your debts

If you want the best possible deal for your mortgage, then you need to strengthen your credit score. Lenders use that score to judge your ability to pay them back. And if it doesn’t look nearly 100% certain that you’re going to be able to pay them back, they’re going to charge you higher rates to offset the risk. Inconvenient, but, if you think about it, pretty fair. So do your best to destroy your debt beforehand.

Have savings to show off

A good credit score is going to help, but having some savings is also going do you wonders when it comes to looking for a mortgage. Lenders see financial savvy in candidates who have savings. It shows strength. Your savings may come in the form of a healthy bank account. It may come in the form of assets such as property, cars, or even your retirement fund. It makes you look like a safer bet. You may want to consider having at least a couple of thousand in savings.

Consider the type of mortgage you need

Oh yes, you’re not just getting “a mortgage.” You’re getting a flexible mortgage. Or a tracker mortgage. Or a repayment mortgage, or a fixed rate mortgage… I could keep going, I haven’t even scratched the surface here. Your unique circumstances are going to determine what kind of mortgage you should get, as well as the lenders, advisors, and legal aides you should be working with. For example, let’s say you’re looking to acquire a very high-value mortgage. In such a case, you may want to consider working with a firm like Enness Private Clients.

Get professional advice

You may think that getting a mortgage advisor is a bit of a waste of money. After all, can’t you just read loads of mortgage articles online (yes, such as this one) and get all the knowledge you need? Hey, I take pride in my articles, but I can’t pretend to know as much as the experts in this field! The world of mortgages is a complex one, and there are so many variables to consider. A mortgage advisor will cost you money, yes. But they can save you tremendous amounts in the process.