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When buying a home, particularly if it is for the first time, many people may find that they are confused by the financial and legal aspects of getting a mortgage before they go to see their mortgage advisor Falkirk based. If this is the case for you, then you will be happy to know that this simple guide is here to help you understand the types of mortgages that are out there, and the one that might be best for you, so that you will have the best information possible when you visit the best mortgage broker Falkirk has to offer. Because the process of buying a home can often be quite lengthy and complicated, having the best information before you start the process is likely to make things a lot simpler for you overall.
Getting an offer in principle
Before you start looking at the home that you wish you buy, you might want to get an offer in principle from your lender. This means that you know roughly how much money you will be able to borrow, and therefore you can look at houses that are within the right range for you. This is likely to save a lot of time in the long term. There are many things that will be taken into account before you are told how much you can borrow so speaking to a mortgage advisor or your bank is very important. One of the important things they look at is your income, so you will need to have as much information to hand about your finances as you possibly can, and then other issues including your life situation, for example if you have any dependents living in your household, your likely job security, and your plans for the near future. To put it simply – lenders will need to make sure that you can afford to pay back what you borrow from them.
Choose the type of mortgage that you require
There are different types of mortgages and for specific advice please talk to a mortgage advisor or your bank about options, this guide is purely informational and has been put together in order to give you a rough idea of what to expect.
Your mortgage term
Mortgages are available over different lengths of time depending on who you choose to borrow from, usually from as short as five years to as long as thirty. The term that you choose will depend on the amount that you need to borrow, and the amount of money that you’re earning. For lower repayments, a longer term mortgage in some cases could be a better option, however you could potentially pay more overall because of the interest rates. A shorter term mortgage will result in the debt being paid off more quickly, however the repayments could be higher in comparison. For specific advice about your situation you need to speak to a regulated mortgage broker or you can go directly to your bank and speak to one of their advisors.
The deposit amount
Depending on your lender, and the type of mortgage that you are getting, the amount of deposit that you need to put down on your mortgage will vary. Usually, it is at least a value of 10% of your property, but you are likely to be offered a better rate overall if your deposit is a higher proportion of the overall value of the property.
When you take out a mortgage, you will usually require some form of legal survey so that your lender knows that they are lending an appropriate amount of money when taking into consideration the actual value of the property. This cost will vary, but it is a cost that is going to push up the overall amount of money spent, meaning that you need to consider more than just the cost of the property that you’re buying.
When you’re looking for a mortgage, thanks to the fact that it is without a doubt the largest amount of money you’re ever going to borrow, you need to ensure that you are thinking about everything you need to in order to come to the right decision at the end of the process. This means that the overall process is likely to be much smoother, and you should be able to secure the home that you have your heart set on.