Are you truly ready?
Check your credit rating
A dodgy credit score can make it very difficult to get a mortgage, as banks or other lenders may distrust your financial abilities. Make use of a free credit check service, before you apply for a loan. You will be able to access a copy of your credit history and then you can go through it carefully, checking for any errors. Sometimes, something as simple as underpaying a cell phone bill can flag up a red mark on your credit score. Settle any unresolved payments and then contact your bank to see what they can offer you.
Get your costs together
It isn’t just the cost of the deposit that you will need to consider when buying your first home. Sit down and try and work out what your monthly outgoings will be, including your taxes and whatever home insurance you will need. If you are not sure about how much you will pay for home insurance, visit or call a number of local estate agents to find out what their properties usually have. Whilst you are there, you can also inquire about the average cost of local homes, which should give you a clearer idea of the kind of budget you will need. You will also need to take into account other costs, such as the use of a national moving company and your bills.
Have a backup plan
If the worst happens and you get refused a loan by all the banks, consider turning to the government. The Federal Housing Association has a scheme whereby it insures the loans of people who are finding it difficult to secure a mortgage. This generally relaxes the banks and makes them feel more comfortable about lending to you.
