3 Ways Of Obtaining Your First Home Mortgage

Without Going Broke

Buying your first house is one of the largest financial commitments you will ever make over the course of your lifetime.  Also, if you don’t go about it in the right way, it could end up being that one important decision that results in you going broke.  It can even take place within the first year of obtaining your mortgage.  Avoid making this mistake as well as others. Read the tips below so that you can look for the best possible deal on your home mortgage.

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What do Your Finances Reveal About You?  

Home or mortgage lenders look for those with a good income to debt ratios.  Are you spending more money than you earn?  It is typical for a majority of individuals and young couples, so don’t worry about it too much.  The first thing that you need to do is address your current financial spending habits and get them under control.  It is paramount to do this since people who spend less money than they earn can get much better deals on their mortgage than those who spend more.

                                                   

Usually, a free budget adviser will be willing to review your situation.  They tend to be fairly good at identifying ways that you can save money without having to make too many sacrifices.  Some reality television programs that are based on getting or saving for your first home mortgage are also fairly good. You should be able to find good advice online about this subject as well.

Who Will Pay the Mortgage? 

Once your finances are in order, you will be able to begin searching for your first house.  Be sure to look for a house that you can repay the mortgage on one income.  One mistake that many couples make is mortgaging themselves to the hilt based on both of their incomes.  There is a good chance you will have children at some point.  What that means is you will have just one income for a long or short period.

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That will obviously depend on how much maternity leave you to end up taking.  However, one thing you can be sure of is that in a majority of cases after you have had your baby, you’re not going to want to return to work as soon as you thought initially.  That can create a lot of financial pressure which can also affect your marriage.

Have Somebody Else Lay the Ground Work   

After you have located your dream house, the next thing that you will need to do is shop around to get quotes on home loans.  Be sure to obtain several quotes.  It might be time consuming; however, it is worth it.  When you ask for several different home loan quotes, usually you can get a much better rate that comes with additional features and benefits.  For example mortgage holidays if you were to become unemployed or sick. Or, flexibility in your repayments, should you ever want to do any renovations to your house.

In this situation, the go-to people are mortgage brokers since they can do all of the runnings around on your behalf.  What is even better is that the financial lender who accepts the agent and you as clients is the one who pays the mortgage broker.

Related Links:

How Do You Navigate The First Home Loan Maze

First Home Loan Tips

Your First Home Loan – How Do You Prepare For Your Loan Application

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