Mortgage Basics for First Time Buyers

Getting a mortgage to buy your first home is an exciting time for anyone, but it can also be a bit frightening if you are going into something you know little or nothing about. If you are looking for a mortgage, the best thing is to get some independent advice from us at Central Mortgages before you do so. Below, we offer a few mortgage basics for someone buying their first home.

Credit Scores

Before you approach anyone about getting a mortgage, it is in your own interest to check your credit score. A mortgage lender will certainly need to do this before offering you any kind of loan. The credit checking companies donbt always carry the correct information about you and your finances; for example, they might still hold a bad credit listing.

It doesnbt cost anything these days to check your credit score online, so it is worth doing. If you think that the company has made a mistake about a particular entry then you can contact them and ask them to remove it.

Types of Mortgages

There are different types of mortgages, of course! Some are fixed rate, some variable. Fixed rate mortgages mean that your mortgage repayments are fixed for an agreed period of time, which means that whether the bank rate goes up or down, your payments will stay the same until that period is up.

Variable rate mortgages are also governed by interest rates, which will affect your monthly payments. If the rate goes up, so do your payments, but if it goes down, your lender doesnbt have to put the payments down. Talk to us at Central Mortgages today for more information and advice!