CAIRN RESOURCES STEP BY STEP GUIDE TO GETTING A MORTGAGE Getting Mortgage Ready Buying your first home is hugely exciting but also slightly daunting. One of the biggest hurdles is getting your mortgage, and ensuring everything is in place financially when you find your dream home. To help explain the process, we’ve outlined some of the main steps to work through when applying for a mortgage. Speak to the experts Many people hold off speaking to a bank or a broker until their deposit is saved and they’re seriously looking at houses, but if you need some advice, it’s no harm making an appointment with your bank or broker now. They can help you assess where you are now with your finances, what you need to do in order to achieve your goal, and what realistically you can afford. A steady income When considering taking out your first mortgage, it’s best to be in a permanent role for at least 6 months or if you are self-employed you will need audited financial accounts for the two most recent financial years amongst other criteria that your provider may request. This shows you have a steady income and financial security and will help determine how much you can actually borrow. Check your credit score Make sure all your bank accounts and credit cards are showing and they have all the correct information. This is a key barometer of your financial health for the providers assessing your suitability for a mortgage. Sort out your finances Your spending habits and direct debits will be reviewed over a minimum of six months, so make sure you are demonstrating a steady level of spending within your means. Save for your deposit Now for the hard part – saving for the deposit. Generally speaking, you will need to save at least 10 per cent of the cost of the house. It’s best to save this regularly, in a separate savings account, as this demonstrates to the bank good financial habits.
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