Mortgages

Belfast Mortgage Advice Guide

Getting Your First Mortgage with Belfast’s #1 Mortgage Advisors

Buying a home is an expensive undertaking and most people will get a mortgage to help.  The problem is that mortgages can be confusing.  This is why you need to know a bit more about mortgages before you start, and why start by having a chat with Crawford Mulholland – Mortgage Advisors Belfast.

Fixed Or Variable

When you look at mortgages, you will notice that you can get either a fixed rate or a variable rate.  It is important that you choose one and choose the one that is right for you.  The rate being referred to here is the interest rate that you will need to pay.

With a fixed rate mortgage, you will pay the same interest rate for the entire duration of the mortgage.  Fixed rate mortgages could have stricter criteria that you will need to meet in order to obtain them.  This is due to the fact that the interest rates could rise in the future and you would still be paying lower rates.

On the other hand, the variable rate mortgage will have an interest rate that changes over the course of the repayment period.  Generally, the interest rate will be amended on a yearly basis, but you will need to read the terms of the mortgage to determine this.  These mortgages will not always have the same strict criteria as the fixed rate ones.

It is important to note that some mortgage lenders have an alternative or hybrid product.  These products will offer the best of both fixed and variable rate mortgages.  With this type of mortgage, you will have a fixed rate for a set number of years and then have a variable rate for the rest of the mortgage term.

The Down Payment

Most people know about the 20% down payment that is required for a mortgage.  The truth is that you can get a mortgage even if you do not have 20% of the sale price as a down payment.  The 20% is not a threshold that you need to achieve in order to get a mortgage.

However, you should have as much as possible for a down payment when applying for the mortgage.  Larger down payments will result in better interest rates.  Some mortgage providers will have down payment thresholds of as low as 3% while others will have higher ones.  You will need to compare the mortgages you qualify for to determine this.

If you are struggling to get a down payment together, there are some assistance programs that you can consider.  A number of cities and states offer these programs which will help you get the financing you need.  Of course, not all mortgage lenders will participate in these programs.  This can make the task of matching a lender to a program challenging.

Mortgages And Your Credit Score

To secure a mortgage, you will need to have a decent credit score.  The exact credit score will vary depending on the mortgage lender, the amount you want and the type of mortgage you are looking at.  Lower scores will often result in higher interest rates, but if your score makes you too risky for the lender, they can refuse your mortgage application.

While the score you already have is important, you also need to know how getting a mortgage can affect your score.  If you apply to a large number of mortgage lenders, your credit report is going to be pulled by all of them.  Having your report pulled too many times can actually negatively affect the score.

Fortunately, there is something that you can do to lessen the risks of this.  You could pull your own credit report for free.  When you apply to the lender, you can take your report with you to get an informal rate quote.  If you want to move forward with the application, the lender can then pull your report.  This will stop your report being pulled multiple times and you can avoid some of the credit check fees that are charged.

If you are thinking of getting a mortgage, there is a lot of information that you need to know.  It is recommended that you speak with a professional advisor if you are unsure of which mortgage to get or which lender to choose.  The right advisor will be able to provide you with a list of the best lenders and mortgages to try.