How Much Can I Borrow?
Before you start looking for your home, you need to find out how much a mortgage lender is likely to grant you on a mortgage and more importantly, how much you can comfortably afford to pay back each month without putting yourself into financial difficulty. There is nothing more disappointing than setting your heart on your house and then finding out that you cannot afford it or that you cannot get a mortgage for it because you don't earn enough. So what you need to do is speak to a professional to see how much you can realistically borrow. You will get a feel for how much your new mortgage is likely to cost each month, too. When you come to us, we will also run through certain things like your deposit for your house, fees, and solicitor costs etc. Again, these are costs that need to be borne in mind.
At this stage, your adviser may discuss obtaining an Agreement in Principle. This is where a mortgage lender is contacted to see if they may lend you the money you need. A credit check is usually performed at this stage too. By obtaining an Agreement in Principle, you reduce the time spent arranging your mortgage once you have found your property.
Budget Planner
Now you know how much your mortgage payments are likely to be each month, you must also take into account all the other bills associated with running your household. Complete the budget planner below to see if you can honestly afford your new home. Have a guestimate at the utility bills, life cover and mortgage payment protector sections (perhaps ask someone who already runs their own home how much they pay).
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