Taking out a mortgage is like making the biggest financial commitment. You must find the right deal that suits your requirements, and there are plenty of options that you can grab in order to improve your scope to get your first mortgage application accepted. Your mortgage advisor may provide you with more suggestions. Let’s dig out some of them.
- Credit score is crucial – Before applying for your mortgage, collect your copy of credit report from any of the credit reference agencies. This allows you to see what lenders consider while reviewing your application. If the credit report doesn’t look great, there are many options that you can adapt to give your score a boost. You can, for example, close your credit card account that you don’t use anymore.
- Start with your budget – When it comes to taking out a mortgage, the thing you need to work on is your budget before submitting your application. Make sure you are in the position to borrow enough to cover your property purchase while having sufficient left to cover your living costs. Monthly mortgage repayment amount depends on how much you borrow and over how long. The interest rate will be charged accordingly.
- Debts hardly help – As it comes to submitting your mortgage application, the last thing the lender would want to find is you owe plenty of outstanding loans. So before applying for a mortgage, try to pay off your debts as much as possible to prove that you can manage your personal finance responsibly while ensuring more likeliness to succeed in getting a mortgage. It also proves that you can borrow more money as well in terms of the affordability calculation done by the lender. Your mortgage advisor may help you in this regard.
- Furnish proof of income – While applying for a mortgage, the lenders are very likely to ask you to provide proof of how much money you make. Show a summary of your pay or payslips. Also, documents showing how much tax is being deducted. They may ask you to submit three months’ bank statements to judge how much you earn and how much you spend.
- Don’t skip jobs frequently – Mortgage lenders prefer their borrowers to be with the same employer for a good amount of time before giving you a mortgage. If you are on your way to switch the job, better you hang on until you get the loan. It is a good idea to be with the same employer for a minimum of 3 to 6 months before applying for the loan.
- Don’t chop and change application – As you have started processing a mortgage application, avoid messing around with it or change figures as this could lead to holding up your property purchase. Changing the figures down the line denotes that the offer has been reassessed and that may add unnecessary delay.
Get professional help – If you can’t manage your mortgage deal on your own or are not sure of what you would be eligible for or how much money you can take out a mortgage, it would be good to get help from a mortgage advisor. They will research the market on your behalf and help you throughout the application process ensuring that your application won’t get rejected.