Embarking on the journey to purchase your first home with RE/MAX Elite, your trusted real estate partner, is an exciting venture. In recent times, entering the property market as a First-Time Homebuyer has posed its challenges. However, equipping yourself with the right knowledge and planning ahead of your application can significantly impact your ability to secure a competitive mortgage offer.
Do I Need an Agreement in Principle?
Securing an agreement in principle, also known as a decision in principle, is a conditional mortgage offer from a lender, provided before your full application. While not obligatory, having an agreement in principle can work to the advantage of First-Time Homebuyers.
Getting an agreement in principle prior to making a mortgage offer enhances the likelihood of your offer being seriously considered by the seller. First-Time Homebuyers hold a strong position in the market as they do not have to sell a property before buying. With confirmation through an Agreement in Principle, your offer as a First-Time Homebuyer stands out, and you gain peace of mind that your offer can smoothly progress to completion.
How Much Can I Borrow as a First-Time Homebuyer?
Being a First-Time Homebuyer doesn't dictate the amount you can borrow; it depends on your financial circumstances and credit score, similar to any other applicant. Mortgage offers may vary between lenders, each with its own criteria.
To estimate how much you might borrow, online mortgage calculators are available. However, for accurate outcomes, we recommend consulting one of our Mortgage Brokers at RE/MAX Elite. Our brokers can help you assess affordability with various lenders efficiently, saving you time and effort while ensuring adherence to lending criteria.
How Can Improving My Credit Score Help?
Your credit score, alongside your income, significantly influences your mortgage application's acceptance. Before applying for a mortgage, understanding and improving your credit rating are crucial. Here are steps to enhance your credit score:
- Ensure your current address appears on all relevant accounts.
- Keep credit usage within 50% of available credit.
- Confirm your presence on the electoral roll at the correct address.
- Timely and full payments on credit agreements positively impact your score.
- Consider a credit builder credit card if you have a limited credit history.
Speak to an Expert at RE/MAX Elite
Our seasoned advisers at RE/MAX Elite are ready to assist you in buying or remortgaging your home, protecting your property and lifestyle, and securing a competitive deal tailored for you. Contact us to benefit from our expertise.
How Much Deposit Do I Need?
While some lenders may request a higher deposit from First-Time Homebuyers, a standard residential mortgage application typically requires a deposit of 10% to 20%. If raising a large deposit is challenging due to a low expendable income, government schemes designed to assist First-Time Homebuyers with flexible requirements may be available.
What Help Is Available for First-Time Homebuyers?
The shared ownership scheme is an advantageous option for those with a low income. It allows you to purchase a share of the property, making both the deposit and monthly payments more affordable. While you pay rent on the remaining share, this option can make homeownership accessible.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What Fees Are Involved with Buying a Home?
Various fees are associated with buying a home, including arrangement fees, valuation fees, legal fees, and stamp duty. Stamp duty exemptions currently benefit First-Time Homebuyers on purchases up to £300,000.
How Can RE/MAX Elite Help First-Time Homebuyers?
Navigating the path to your first home with RE/MAX Elite ensures a supportive and informed experience. From identifying the most suitable mortgage type to securing competitive rates, our qualified and experienced Mortgage Brokers offer invaluable advice. With an extensive market view, we access mortgage deals not found on the high street, guiding you towards lenders likely to accept your application.
Discover the ease of your first home purchase with RE/MAX Elite. Get in touch to embark on your homeownership journey.