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Are You A First Time Buyer? Mortgage Facts

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By : Frank Samner    99 or more times read
You might be a first time buyer. Or you might be searching for re-mortgage options for your home. It is significant that you get a realistic hint of your repayment details along with your borrowing limits. Interest rates might vary and you should know that your payments can elevate or descent.
Your mortgage costs depend upon various factors, like:

  • Income protection insurance
  • Life Insurance
  • Mortgage term

Different mortgage lenders have different ways to compute repayments– yearly, monthly, or daily.

I. The first step in acquiring a mortgage is to find out how much you can borrow. To do this you will need to communicate to the lender how much you earn and whether you have any loan commitments. They will calculate and give you the amount that they are prepared to lend to you.

II. You also need to find out how much you can save on the mortgage if you pay off earlier than scheduled.

III. Budget your mortgage payments carefully. Make sure you add up your monthly bills and other financial commitments for the entire month. Budget for everything you can think of from electricity and gas bills to holidays etc. This way you will have a better idea of how much you can afford to pay towards the mortgage every month.

If you are a first-time buyer there is a lot to think about when choosing a mortgage plan. It could get stressful but if you are in the right hands, with people giving you help and correct guidance, then the process can be simplified.

Once you know how much you can borrow, you start looking around for your new home. By working out how much you can afford to pay each month, you will get an idea of the maximum purchase price you can go for. You will also need to decide whether you want the monthly payments to be fixed.

Before you apply for a mortgage, get a KFI (Key Facts Illustration). The KFI will give you all the information required about the mortgage deal, and will also permit you to compare between different mortgages, so you can get the best deal. Once you fit the lender’s required profile and they agree to the mortgage in principle, they will run the necessary credit checks.

The final Stage is the Full Application and this process can be carried out at the local branch or on the phone.
Frank Samner writes about equity release and other mortgage solutions.

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