1. Not checking your Credit Score
It is crucial to check that your credit is in good shape before applying for a mortgage. Lenders will want to ensure that you have managed your debt responsibly in the past, so if your credit score is poor, look at ways to improve this before applying for a mortgage or speak to a specialist lender about your options.There may be some mistakes on your credit report that you want to resolve, it is important to regularly check your credit report for any discrepancies. There are plenty of free tools to help you, such as Clearscore and Experian.
2. Not applying for a Mortgage in Principle first
Before you start booking viewings, it’s a good idea to get a mortgage in principle first, sometimes known as a ‘mortgage promise’, and it will give you an idea of what the lenders are willing to loan to you. This certification is usually valid for up to three months and many estate agents will ask if you have this if you decide to put an offer in on a property.Be aware that this is not a mortgage agreement or guarantee that the lender will loan that amount of money to you. It will reassure estate agents that you are able to lend up to that amount of money, and you will know what type of homes you can afford.
3. Going Over Budget
It can be easy to get caught up in the excitement of looking at houses, and you start to look at more and more expensive homes. Always consider the other costs that come with owning a home too, such as council tax payments, bills and insurance. Ensure that you can afford your home if mortgage payments or bills rise, so you don’t head into trouble in a few years' time.4. Not Shopping Around For a Mortgage Deal
Mortgage rates are on the rise, so it is important to shop around for the best deal possible. You do not have to simply turn to the lender that you usually do your banking with, especially if you can find a cheaper deal elsewhere.If you are unsure about mortgages and what you need to apply, chat to our friendly and experienced team on 028 9065 3333.
5. Failing to Factor in Buying Costs
You have found the house of your dreams and the bank has said yes to the full borrowing amount that you require, but what about the other costs when it comes to buying a home? Make sure you factor in other costs, like stamp duty, solicitors fees, survey costs and how much it will cost you to move your furniture in.If you are unsure about the new stamp duty fees, check out our handy guide to see how it affects you.
6. Not Checking Out the Local Area
If you have found a home that you love, it is worth visiting the area at different times of the day and week. The street that the property is on may seem quiet on a Tuesday morning, but it could feel like a different world on a Saturday evening. On the other hand, you may have a house viewing in the evening, but during the day the streets are extremely busy with backed-up traffic.Think about more than just the property itself, what else do you require around your home? Would you like parks within walking distance? Or perhaps an outstanding school if you have a young family, or considering starting one. If you don’t drive, you may wish to have a home with great public transport links. The neighbourhood that you live in has a big impact on the way that you feel about your home, so take these things into consideration when you start looking at the areas that you would like to live in.
7. Ignoring Things that Lenders Hate
You may have found a property that you love, but there are things that can stop a lender from being reluctant to offer you a mortgage. These can include:- A property not having a bathroom or kitchen
- A property with a short lease
- Homes made of non-standard materials, such as concrete
- Derelict properties
- A property that has structural issues
8. Forgetting to Ask the Right Questions
Purchasing a home is usually one of the biggest financial decisions that you will have to make, so don’t be afraid to ask questions. You may want to draw up a list of questions ahead of the viewing so you don’t forget them.Even if something seems obvious, don’t let embarrassment stop you from asking questions. It’s better to ask questions early on than issues causing hassle down the line. It’s not just the property owners that you should ask questions of, ask the conveyancer and estate agents questions too or for them to clarify information.