You have heard a lot about mortgages. You always tempted to go for the mortgage. But the term 'mortgage' is strange to you. You are more sceptical about it. There are lot of questions in your mind. What if I am not able to pay the loan? How much will be interest rate? How can I find a genuine lender for my
First Mortgage? That is quite natural. If you are not thorough about the pros and cons of mortgages, it is imperative that you should understand the intricacies of it before signing any deal.
There are a number of advantages and disadvantages of first mortgages. On the up side, many lenders have schemes specially aimed at the first time mortgage borrowers with special offers such as free valuation, legal fees paid or even cash backs.
But on the flip side, since you have never had a mortgage before, it is more difficult for you to prove that you will be a 'good borrower'. Most of the lenders will scrutinise your past credit history. If you are having a poor credit, some lenders will not even entertain you.
Poor credit ratings are framed because of county court judgements against you, defaults, arrears on payment, bankruptcy etc. Some times you miss some payments and you are a bad creditor. It is apparently not your fault, but situations push you to be in a bad credit list.
Also because house prices have risen quite a lot in the recent past, many first time mortgage borrowers need to borrow quite large sums with little or no deposit. And this weakness of borrowers is well exploited by shrewd lenders.
Few tips for those who are planning to opt for
First Mortgage:
• Take advice from your relatives or friends who have already taken mortgage
• Search online for the mortgage rates
• Instead of going directly to the lenders, approach to some brokers or intermediaries.
Pondering over the above points will certainly help you get a good first mortgage.
