For a lot of newly weds buying their first home together is something that they dream about and when they view each house they imagine how well their new furniture will look and what beautiful colours they will paint each wall and even which of the bedrooms will be ideal for their forthcoming children.
But far from these wonderful ideas the one concern that they ought to have on both of their minds is the mortgage. A First time Mortgage for a home can be expensive if one does not know what to look for.
The majority of banks and financial institutions often offer first time mortgages to people wishing to buy a home but first time mortgages are somewhat different to conventional mortgages in so much as the first time applicants do not possess a credible account of a previous mortgage repayment history.
Many first time buyers do their financial business with only one financial institutions out there including having a current or savings account with them. Therefore they will want to think about them first when they are looking for a first time mortgage. Their current bank for example will more than likely already have a perception of their previous and current financial status as countless people do apply for credit cards from their principal bank and this can certainly help them when the time comes to fill in each of the documents necessary for a mortgage.
The lenders will desire to know how secure the borrowers employment is and they might request a letter of confirmation of their employment and income from their employer. It is advisable that they let their employer know that they are applying for a mortgage so that they will keep and eye out for any such letters from the lender. If they are self employed then their bank may request a copy of their most recent tax return. They will want to view this simply because it will provide them with a better understanding of their gross annual income, so they should be ready to supply such tax returns for the past 3 years of so.
When applying for a first time mortgage they should know that the home they purchase will be the main portion of collateral that they will own. But they should be aware the bank or mortgage company will have the power to repossess their home should they ever fail to meet the repayments and other terms set out in the mortgage agreement.
In a number of cases where a house buyer is seeking a first time mortgage the bank may well ask for someone to co-sign the loan agreement. Quite frequently a parent will be the co-signer. But they should be advised that this does mean that if they fail to make the repayments then the co-signer will become liable.
While the vision of getting their self into so much financial debt can make them cautious about applying for a first time mortgage, the venture is well worth it, as owning their very own home is a step in the right direction to a secure financial future.
Zhang Xiao Hong Remortgage Quotes and UK Finance Infopedia
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