Owning our own home is a dream for everyone. It’s crucial to find the best lender who can help you to close your loan as quickly as possible so that you can move into your own home. Before we invest a huge amount in any of the things we do lots of research, so in the same way finding a good lender is very essential for the first-time buyer mortgage in the UK.
Best mortgage lender for the first time buyers in the UK will help you in government loans, reasonable fees and will help you in financial assistant programs.
You need to save for a deposit before looking at properties. Generally, you need to save 5%-20% of the cost of the home. For example, if you want to buy a home costing put pound symbol 150,000 you will need to save at least 7500.
Tips for How to Choose Best Mortgage Lenders for First Time Home Buyers;
1. Credit score and history
Your credit score matters a lot in buying your first house. Lenders will first look at your credit score and financial history and both can affect in a big way. Always review your credit score before looking for a good lender. A lender will judge you on debt to income ratio, a big factor how much they will let you borrow, keep in mind the amount you are allowed to borrow. It is ok to have less capacity to pay the loan then what we desire for, as with time credit problems are fixable. A good credit score gives you more lenders and affordable loan options to choose from.
2. First time home buyer programs
Several governments or other schemes/programs can help you buy a home. These programs include affordable loan, options for a public servant, student loans and all these benefits can be combined and help you in getting first home as affordable as possible.
Not all lenders participate in such type of programs so be sure to ask the lender before selecting. All rules and regulations are different for different states, property location, and lender. State housing and financial agencies market these types of programs, the mortgages are handled by credit unions, typical banks, and non-bank lenders.
3. Find lenders who offer government-backed home loans
Not all lenders offer government-backed home loans. HUD, FHA, U.S. Department of Agriculture, veteran’s loan, Native American direct loans are provided by the government. USDA and VA loans can be obtained on zero down payments. FHA loans required a minimum 3.5% of down payments, credit scores for all three are generally lower than conventional loans. Always check these options before selecting a lender because all lender does not provide FHA, VA and USDA loans.
4. Compare interest rate and more
Comparing the interest rate will give you a more clear picture of what you have to pay over the life of the loan. Interest rate changes with time so always check before applying for first time home. Compare application, appraisal, title, and loan origination fees which affect the closing cost and this will differ widely on lenders. There are different tools to see current interest rates from different lenders, use that tool and check the interest rates.
5. Before housing shopping get preapproved
Pre-approve the lender before shopping, processor differs for different lenders, some lenders will allow you to upload documents online and can provide approvals in minutes. While some other lenders will say you to visit local branch to submit the documents in person. So always check which lender is better for you according to your schedule. Preapproval gives you an idea of the lender
Additional Information It’s better to find a mortgage advisor near your locality they will help you in a better way. There are options like mortgage advisor near me search for it and many companies will help you in finding the best advisor. Smortgage.co.uk is the best advisor company in the UK which helps you in a smart and easy way to select and compare mortgage options from multiple independent advisors.