10 Steps to Help First-Time Homebuyers Secure Their Dream Home (Even if your Self Employed)
Mark Jones
I help self employed to get a mortgage ??3 CIS statements | 5% Deposit | 1 year Self Employed Accounts | First Time Buyers | Sub Contractors | Day rate contractors
Purchasing your first home can be an exciting yet overwhelming experience, especially when it comes to understanding mortgages. Whether you're planning to buy a charming countryside cottage or a sleek urban apartment, navigating the mortgage process confidently is key. At Jones & Young, we specialise in making the mortgage process straightforward, stress-free, and successful—even for first-time and self-employed buyers.
To help you on your home-buying journey, we’ve curated 10 essential steps that will set you up for success. By the end of this guide, you’ll know exactly where to begin and how to make the most of your mortgage options.
Step 1: Speak to a Trusted Mortgage Adviser
The first step is often the most important—seek advice from an expert mortgage adviser. Unlike banks, mortgage advisers work for you, not a specific lender, which means they can offer unbiased advice and access to a wide range of mortgage products. At Jones & Young, we guide you through the entire process, helping you identify the best deals for your unique financial situation. For self-employed individuals or those with non-traditional income streams, we specialise in securing tailored mortgage solutions.
Key Takeaway:
A professional adviser doesn’t just simplify the mortgage process; they maximise your chances of success while ensuring you get competitive rates.
Step 2: Understand Your Budget
Before you fall in love with a property, it’s critical to determine how much you can realistically afford. Take a close look at your income, monthly expenses, and future financial goals. Many lenders will also assess your debt-to-income ratio to ensure you’re not overextending yourself.
Tip:
Use an online mortgage affordability calculator to get a rough estimate—but remember, a mortgage adviser can provide a more accurate figure based on your complete financial picture.
Step 3: Save for a Deposit
A deposit forms the foundation of your mortgage. Most lenders require at least 5–20% of the property’s value, but a larger deposit often means better mortgage terms and lower interest rates. Combining personal savings, family gifts, or other government schemes can help you reach your target.
For Self-Employed Buyers:
You might need to show proof of consistent income over a year or two, but as a small business owner, you can also use net profits to strengthen your mortgage application. Start saving early to improve your chances.
Step 4: Get Your Paperwork in Order
Applying for a mortgage involves serious documentation, so it pays to be prepared. Typical documents include:
Organising these ahead of time will make the application process smoother and quicker.
Step 5: Understand Your Credit Score
Your credit score can make or break your mortgage application. Lenders use it to determine whether you’re a reliable borrower and what interest rates you qualify for. If your score isn’t as high as you’d like, consider steps to improve it, such as reducing debt, avoiding new credit applications, and always paying bills on time.
At Jones & Young, we’ve successfully helped clients improve their creditworthiness to secure competitive mortgage deals—even after past financial challenges.
Step 6: Explore Different Mortgage Options
There’s no one-size-fits-all solution when it comes to mortgages. Understanding the various types—such as fixed-rate, tracker, offset, or interest-only mortgages—can help you choose the product that aligns with your goals.
What We Offer:
Our mortgage specialists will walk you through the pros and cons of each product, including options designed for first-time buyers and self-employed individuals.
Step 7: Get Pre-Approved Before House Hunting
A mortgage pre-approval is essentially a green light from your lender, indicating how much you can borrow. This not only strengthens your position as a buyer but also helps you shop for homes within your budget.
Pro Tip:
A pre-approval is more meaningful than a general pre-qualification, as it involves a comprehensive review of your finances.
Step 8: Ask Questions Along the Way
Never hesitate to ask your mortgage adviser for clarification. Whether it’s understanding legal jargon or comparing interest rates, clear communication ensures you’re fully informed every step of the way.
At Jones & Young, we’re here to answer your questions and empower you to make confident decisions.
Step 9: Thoroughly Review Your Mortgage Documents
Before signing any agreements, take the time to carefully review your mortgage illustration and other key documents. Pay close attention to:
Final Check:
Ensure the terms align with your financial goals, and don’t rush this step. Your mortgage adviser can double-check everything on your behalf.
Step 10: Secure Homeowners Insurance
Once your mortgage is approved, it’s time to protect your investment with home insurance. Most lenders require this before the sale can be finalised. Choose a policy that offers robust coverage against unexpected events like theft, natural disasters, or fire.
Bonus Tip:
At Jones & Young, we can connect you with trusted insurance partners to simplify the process.
Why Jones & Young is Your Mortgage Partner of Choice
At Jones & Young, we don’t just focus on getting your mortgage approved—we focus on building trust and long-term relationships. Whether you’re navigating the complexities of buying your first home or securing a mortgage as a self-employed individual, our dedicated advisers are here to guide you every step of the way.
Here’s why so many first-time buyers trust us:
Take the First Step Towards Home Ownership
Buying your first home doesn’t have to be daunting. The right guidance and preparation make all the difference. At Jones & Young, we’re passionate about helping first-time buyers turn their homeownership dreams into reality.
Ready to get started? Contact us today for a free consultation with one of our expert mortgage advisers.