When it comes to getting ready for a mortgage, it can seem like there is a lot to take care of.
Buying a home can be an exciting time, but can also come with some stress. Not if you partner with us! Our promise to you is to remove the hassle and confusion that comes with finding the right mortgage so you can get on with house hunting. (You can see some of our testimonials here from our customers.)
That said, buying a home is a serious commitment.
It’s worth pausing and spending some time to really dive deep into your reasons for buying a home to make sure it is the right decision for you.
Is buying a home affordable for you?
Affordability is a key consideration when you want to buy a home.
It is vital that you get deeply involved with how you can afford repayments when you begin the journey to applying for a mortgage. This could mean that it could take a few months to get you mortgage-ready.
Don’t be disheartened by taking extra time.
It will be time well invested to get you in tip-top shape to apply for your mortgage.
When we say dive deep into affordability, we are talking about your monthly income and budget.
Lenders are going to want to be completely reassured that you can repay your mortgage amount every month. For the entire duration of the term! That is why they go through the documents you submit as part of your mortgage application with such a fine-toothed comb.
Mortgage terms can be as high as 35 years.
Knowing every Euro about your ability to afford your mortgage is key.
Analyse your finances
Your finances have to show that you can support your decision to buy a home.
This means no outstanding debts.
As far as possible, clear your car loan and credit card debt prior to applying for a mortgage. If you can’t completely clear these debts, make sure they are reduced by as much as possible.
In addition, many people don’t think of the maintenance costs that go with owning a home.
These repairs costs can add up.
While you don’t need to have this money right at the start of your mortgage journey, it is important to begin budgeting for it.
Is your deposit substantial enough?
You can never save too much when it comes to saving a deposit.
Although people feel intimidated at the thought of saving for a deposit, once you create a savings plan it can become an exciting project.
Every Euro you save will be an added mark in your favour when it comes to your mortgage application. Get your deposit mindset right and you just might surprise yourself with how much you can save.
Mortgages also come with fees. Therefore, saving over and above the amount you need for a deposit will also count in your favour as you can show you are able to afford all the ancillary costs.
Get clear on your reasons for buying
Peer pressure is a real thing, but it doesn’t have to be something that you listen to.
Buying a home just because all your friends are is not a good reason to make this sizable investment.
Nor is feeling that you have to buy a home purely because it’s what you “should” do at the stage of life you’re in.
Buying a home should be a decision you make when three important elements are in place in your life.
- You feel ready to settle down.
- You are ready emotionally to make the long-term investment.
- You are capable of managing the financial costs of a mortgage.
Begin your mortgage journey by understanding the long-term implications of what owning your own home will entail.
Then contact us. We’d be delighted to chat with you about your mortgage needs.