Getting your finances in shape: Top tips for first-time buyers looking for a new home
Are you a first-time buyer? Thinking about taking the first step onto the property ladder in 2022?
If so, one of the most important steps is to understand your financial position. Get this step right, and you’ll be able to search with confidence, safe in the knowledge that you know exactly what is within your budget.
If you’re looking to get your finances in order for your first home purchase, we’ve put together a short guide with our top tips to make it more straightforward to go from house hunter to homeowner.
1. Check your credit score
Whenever you spend money on a credit card, take out a car loan or apply for a mortgage, lenders will look at your financial history to check that you will be able to pay back the money you want to borrow. The information is collated together and categorised to give you an overall ‘credit score’.
There are a number of free websites where you can check your own credit score. And it pays to spend some time improving it.
For example, are you up to date on all loan and credit card repayments? Is your address up to date with all the financial firms you deal with? Are you also listed on the electoral roll? Checking these points should help ensure that your profile does not raise any red flags to lenders, making them more likely to offer you a mortgage.