Are you’re a potential first time buyer who’s ready to get on the property ladder but doesn’t know where to start?
Or maybe you’re ready to move on from your current home, but aren’t quite sure how to go about upgrading.
Don’t worry – your friendly Beewise mortgage advisors are here to help! We’re on hand throughout your homebuying process, including sharing initial advice.
So, scroll down for our step-by-step guide to making those dreams come true.
From checking your credit to discovering how much you can afford to borrow, setting savings goals and getting a mortgage in principle, we’ve got you covered.
Read on for more, or call 01934 204841 to get tailored advice from your local Beewise mortgage expert right now.
Have a clear idea of your finances
When it comes to working out how much you can borrow to buy a home, your Beewise mortgage adviser will need details of your income and outgoings.
And, while we’ll collect recent bank statements and go through everything for you, it’s good to have a clear idea of what’s going in and out of your account.
Make sure you know what direct debits you have set up, and clear or cancel anything you don’t need, from gym memberships you never use to old credit card accounts that are still open.
You’ll also need to work out your current deposit fund. If you’re a first time buyer, that could mean adding up your savings, or asking the Bank of Mum and Dad for a few extra pennies.
Bear in mind that if you have a Help to Buy ISA the bonus is payable on completion, not exchange, so this can’t be used towards your deposit fund. If you have a Lifetime ISA this can be included though!
If you’re looking to sell and move, most of the deposit often comes from equity in your current property – the money left over from the sale price once your mortgage and other costs are cleared.
Your local Beewise advisor will calculate this for you, and either way we’ll advise how much you’ll need to put aside for other costs along the way, such as solicitors’ fees, surveys and stamp duty.
We’ll also let you know which fees are payable at what stage, so you’ll have a clear idea of the whole process.
Check your credit situation
All lenders will run a credit check on you when taking out a mortgage, so it’s good to get a copy of your credit report before applying for one.
That way, if there’s any adverse credit on there – we’re talking missed payments, defaults or CCJs – you can let your Beewise mortgage advisor know and we can find the right lender for your situation.
Getting your credit report is also a good way to check if you’re registered on the electoral roll at the right address – something that boosts your credit score.
And it’ll also confirm if your address is up to date with companies you’re linked to, such as bank accounts, credit cards and loans, as they’ll need to match on any background checks.
If you’re not sure on how to get hold of a copy of your credit report, ring us on 01934 204841 for advice, or click here to arrange a call.
Or, for more on managing your money – especially around Christmas and new year – read our helpful post on what does and doesn’t affect your credit.
Discover how much you can borrow to buy a home
This next part is where your local Beewise mortgage advisor steps in! Once you’ve done that groundwork, we’ll give you an clear idea of how much you can get a mortgage for.
We wouldn’t recommend using online calculators as these don’t take into account the bigger financial picture – check out our blog post for more on what lenders look at.
Instead, your Beewise advisor will accurately work out how much you could borrow, getting you the maximum borrowing figure available across the mortgage market.
And, we’ll get you a mortgage in principle – your provisional yes from a lender – often within 24 hours of you sending over your paperwork, so you could start viewing houses straight away.
By doing this you’ll know exactly what price range you’re looking at, plus we’ll give you a rough idea of monthly repayments, so you have a clear idea of your overall budget.
What if I can’t afford my dream home right now?
Getting Beewise to calculate your borrowing power is great as it means you have a clear idea of your current affordability.
But, if your potential mortgage amount and your current deposit don’t quite get you to that dream place, there are a couple of options.
The first is to keep saving. Keep track of your spending through a budget planner or spreadsheet, as small purchases here and there can easily add up.
You could also try paying off credit cards or loans as this could potentially give you a higher borrowing amount. If this is an option, your Beewise advisor can let you know how much of a difference it would make.
If you’re a first time buyer, the second option is to buy somewhere anyway! Sometimes we have a fixed idea of what we want our first home to look like, but just getting on that property ladder can be a great start.
Not only will your monthly payments be clearing off your mortgage and not your landlord’s, if property prices go up, so could the equity in your home.
Plus, your financial situation could change for the better over the next few years, meaning by the time you can afford that dream home, you’ll have even more funds behind you.
Are there ways to borrow more?
Yes, there are plenty of other ways to boost your borrowing amount. This could be using a scheme such as shared ownership, or by asking a friend or family member to go on the mortgage with you.
By adding someone else onto the mortgage, you’ll be increasing the income a lender will consider, meaning you could buy that dream home after all!
Get in touch on 01934 204841, or click here to arrange a call to chat through your options.
Do I need to sell my home before I start looking?
We get this question a lot from people looking to move home. The short answer is no, but we would advise booking in a few valuations and getting yours on the market.
Beewise work with local estate agents so can give you recommendations, and having it up for sale puts you in a better position when it comes to making an offer.
If you see a house you love but yours isn’t on the market yet, there’s a chance the seller won’t take your offer seriously, or prioritise an offer from someone in a stronger position.
It’s always better to have a buyer that knows you’re still out looking, than to miss out unnecessarily!
The best way to make 2024 the year you buy your dream home? Contact Beewise
Now you know how invaluable we are when it comes to the home buying process, give us a call and we’ll get you on your journey.
Whether you’re ready to start looking, or want to know what you need to work towards it, we’re here to help.
Your local Beewise mortgage broker won’t just save you time, money and stress on your mortgage deal, we’ll help map out your homebuying journey with expert advice every step of the way.
To get in touch, click here or call 01934 204841. We offer evening and weekend appointments to fit with your lifestyle, plus face-to-face appointments or video calls to suit you.
And we can help if you’re looking to remortgage, whether you just need to save time and money, or want to borrow more towards home improvements or debt consolidation.
Awarded Silver for South West Mortgage Advisor Office and Bronze for Best Mortgage Office in the UK 2023, you’re in safe hands with Beewise FS Ltd. Check out our 250+ 5 star Google reviews here.
Looking for more expert advice? Check out these other helpful blog posts!
Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.