Getting onto the property ladder can be fraught with all kinds of anxieties, both emotional and financial. But while knowing you’ve found your dream home can be a highly subjective and sometimes soul-searching experience, getting the finances in place to pay for it will require a whole different set of skills, particularly a cool-headed and highly practical approach.

Budgeting for mortgage deal success

Getting the budget right in the first place is a vital step if you are looking for property, and to know your budget you will need to investigate what type of mortgage deal is available to you in the current market.

Speaking to a mortgage advisor can be beneficial if you are trying to work out what amount you will be able to borrow. The types of questions they will ask may include:

1. How much can you pay as a lump sum for a deposit?

2. What is your current salary?

3. Do you have any loans, debts or credit card bills you need to pay off?

With this information, an advisor who is aware of the types of mortgage deals currently on offer will be able to give you guidance on how much you can afford to spend on a property. It is important that you are aware of this before you set your heart on a property, or you could be sorely disappointed!

Researching the market

Comparing mortgage deals across different lenders is important if you want to find the right deal for you. Remember – buying a property is likely to be one of the biggest purchases you will ever make, and choosing the best mortgage deal for your circumstances really could save you thousands in the long run.

You need to compare the different varieties of mortgage such as interest-only versus repayment mortgages, as well as fixed-rate versus variable rate and tracker mortgages, and calculate your monthly payments and overall payments as precisely as you can to decide which is the best option for you.

The next step to gaining a mortgage deal: agreement in principle

Once you think you have found a mortgage deal which really suits your needs, it is sensible to obtain an ‘agreement in principle’. While this does not guarantee that you will be able to borrow that amount, it is evidence for any estate agent and seller that it is highly likely that you will be able to borrow the specified amount when you apply for the mortgage for real, and this evidence will make you a much more attractive buyer.

Don’t count your chickens until the mortgage deal is hatched

While saving up a good deposit, speaking to a mortgage advisor and gaining an agreement in principle are all important steps towards getting the mortgage deal you can afford, the truth is that the lender can change their requirements or even withdraw their offer if unusual economic conditions prevail, or if they find out new information about your circumstances. It’s therefore important to stay level-headed and think practically about other options, until you have the crucial exchange of contracts which seals the deal and makes the property yours.

Author Bio: At Credit Choices you can compare mortgage deals online. Whatever your individual mortgage needs, we can help you find the best deal.

Category: Finances
Keywords: mortgage deals,mortgage deal,mortgages,mortgage budget