When should I look for a mortgage?

If you’re thinking of buying a new home, you maybe thinking, “When should I look for a mortgage?”

House-hunting is quite exciting but it can also pretty stressful, so being prepared is always key to buying. The sooner you find out what you can afford, the better!

Spring is always a busy time for the property market. And delaying a mortgage application could mean missing out on your dream home because someone else was better prepared.

So why should you start speaking to a mortgage broker ASAP?

Knowing how much to borrow

It’s all well and good browsing estate agent websites or property portal sites, such as Rightmove. But unless you know what you can afford, you may end up wasting time.

You see, while you may know how much deposit you have, you shouldn’t assume the mortgage you’ll be offered. Lenders take lots of information and assess it before making you a mortgage offer.

So, if you have more debt then you realise (and it’s easy to lose track) you may be offered less than you expected – even with a good deposit.

If you currently have a mortgage and are planning on moving, rising interest rates and changing financial circumstances means you may not be able to borrow as much as previously.

To sum up, you cannot second guess how much you can afford when it comes to house buying. Speaking to a mortgage broker, such as The Mortgage Dog, means you know what you can afford before you start looking. As a result, you won’t waste time viewing property that’s out of your budget.

Your decision in principle

Before estate agents put the ‘sold subject to contract’ sign outside the property you want, they’ll need a ‘decision in principle’. Until they do that, anyone can make an offer ahead of you!

The decision, or agreement, in principal isn’t a mortgage offer! But it does mean that a lender is willing to lend you a certain amount. If you have already instructed a mortgage broker, you’ll have this information, which helps you keep a step ahead.

For full information about a decision in principle, click here.

If you currently have a mortgage

Anyone currently paying a mortgage will know better what will happen to it if you are planning to move. Knowing what will happen means it’s best to speak to a mortgage broker sooner rather than later! Again, this helps ensure you’re not wasting time looking at property outside of your budget.

Many mortgages include fees for early payment, so a broker will help advise you. Others are portable, which means the can be transferred to your new property. So, if you need a new mortgage for a new property, it’s better not to delay speaking to your broker.

No matter why you need a mortgage, remember, your home maybe repossessed if you do not keep up repayments!

If you looking for a new home, then speak to one of our advisers today.