Mortgage Preparation Tips
posted in Mortgage News
We might be heading towards the halfway point of the year, but that doesn’t mean that you can’t reassess your financial goals and begin preparing to get a mortgage loan; not all resolutions have to be made on the 1st January! With this in mind, here are a few tips to help you better manage your finances and begin saving for a mortgage:
Set a realistic budget
This is one of the first steps most people take towards ensuring that they’ve not only got enough money to survive, but that they can put some into savings for a down payment and mortgage, too. Try to work out exactly how much money you make each month, how much you spend, and what you spend it on. Once you’ve got this information, you can figure out a way to spend less (or if you’re lucky, earn more) and save more.
Eliminate unnecessary expenses
Expenses, especially non-essential ones such as eating out or buying a coffee on your way to work, can really eat into your budget and make saving money for a mortgage, hard. Assessing your expenses and trying to cut back on as many as you can, can help you reduce your outgoings, and save more money.
Compose a goal list
After following the above two tips, you can then compile a set of goals, such as paying off your credit card bill, or saving enough money for a down payment. Be clear about your goals and where possible, set a target for when you want to meet them by.
Consolidate your debt
If you’ve got multiple debt sources, try to consolidate them into a mortgage for a single, monthly payment, which will typically be at a lower rate of interest. For more information on this, speak to a qualified financial advisor or local mortgage broker.
Try the pay fast, buy slow method
Paying bills, the minute they come in instead of waiting, gives you a much clearer idea of where you are with your finances at any given moment. Also, and perhaps more importantly, you’ll avoid any late payment fees or compounding charges. To complement this, buy slower and work to reduce any impulse spending that you might be guilty of!
It’s certainly true that a mortgage is a big financial responsibility, and once you’ve saved enough for a down payment, the responsibility doesn’t stop there. You’ll need to be able to budget for your monthly mortgage payments as well as being able to run your household, but don’t worry, help is out there. Not only can a mortgage broker help you get a fantastic mortgage rate that you might not otherwise have had access to, but they can guide and advise you as per your specific financial circumstances.
So, if you’re preparing to secure a mortgage, seek help from a professional mortgage broker and get the best advice, and best rates.