Step-by-Step Mortgage Guide for First-Time Buyers

Buying your first home is an exciting milestone — but it also involves one of the biggest financial commitments of your life.

This step-by-step guide helps you understand how the mortgage process works and what to expect along the way.

1. Assess your financial situation

Before applying for a loan, review your finances:

how much savings or down payment you have,
what monthly payment you can afford,
whether you have other debts.
Banks usually require at least 20% down payment, but the more equity you have, the better your loan terms will be.

2. Pre-qualification

During pre-qualification, the bank evaluates your eligibility for a loan and estimates how much you can borrow.
You’ll typically need:

proof of income,
employment verification,
3–6 months of bank statements,
personal identification.
This step helps you define your realistic price range.

3. Choose the right loan type

Common loan types include:

fixed-rate mortgages – stable and predictable,
variable-rate loans – cheaper at first but riskier,
government-supported programs – e.g., family or first-time buyer schemes.

Always compare several offers and focus on the Annual Percentage Rate (APR) when deciding.

4. Property valuation

The bank orders a property valuation to determine the market value of the home you want to buy.
This establishes how much the property can serve as collateral for the loan.

5. Credit assessment and signing

Once all documents are submitted, the bank performs a credit assessment.
If approved, you’ll receive a loan offer outlining:

interest rate,
term,
monthly payment,
conditions and guarantees.
After acceptance, you’ll sign the loan agreement.

6. Disbursement and registration

The loan is disbursed after signing the sales contract and registering the mortgage.
The Land Registry then records you as the new legal owner of the property.

7. After disbursement

Monitor your repayments, keep your property insurance active, and stay informed about early repayment options.
Regular financial reviews can help reduce long-term interest costs.

Summary

Taking out a mortgage can seem complicated, but with good preparation and professional advice, it can be a smooth and safe process.
Your first home is not just an investment — it’s the foundation of your future.