So you are a first time home buyer, you’re thinking of buying. You are sitting on the train or bus and are wondering: “What steps do I need to take to firstly get fast mortgage approval and then buy a house? How much of a deposit will I need; what mortgage calculator do I look at; what rates are available? Which bank do I approach? Perhaps a mortgage broker can assist?”
Eureka – I will contact Mortgage Plus for clear independent mortgage advice for first time buyers.
So you heard about the 7-minute abs that give you a washboard stomach. There is a 5 minute, a 6 minute and as many minute workouts available nowadays. Everything has to be done yesterday. It’s all about speed. The 4-minute mile was once described as impossible to achieve but is now 16 seconds quicker with Hicham El Guerrouj the current men’s record holder with his time of 3:43.13. Now that is fast. Usain Bolt ran 100m in just over 9 seconds but would he run a 4-minute mile. Perhaps if he trained and took his time.
Getting a mortgage approved is not about speed. It’s the process leading up to that moment that is a minefield. Unlike the 7 minute workout or the 9-second 100m sprint, the process to getting approved cannot be rushed.
Here are the 5 keys steps:
- Set a timeframe. The banks require the previous 6 months bank accounts, income documents and loan paperwork so you need to be prepared. Start now and think of a time 6 months ahead as the time you want to apply.
- Set a budget of what you need every week – have a treat account so you can have a meal out, a few pints or a weekend away. Set your savings to match the required mortgage repayment amount and then add about 15%. This shows the banks you are clever with money. Speak to Mortgage Plus to plan that budget.
- Cut out the messy stuff in your accounts. Paddy Power and Bet 365 won’t pay your mortgage. Neither will 5 or 6 transactions every Saturday night in your local either. Refer to above and plan. However, you don’t need to be a hermit.
- Build up your savings – it’s your money but don’t touch it. If you dip in and out then perhaps getting a mortgage may not be for you just yet.
- Finally, reduce your credit card debt. Car finance, personal loans are fine but the lenders don’t like big credit card usage or bills. Don’t take cash out with your credit card either. This is a definite no-no.
Before you know it the six months will have passed, you will have built up your savings, paid your bills and be in a position to apply for your mortgage approval.
Remember it’s a marathon, not a sprint.