Taking a mortgage is a very huge financial commitment that requires you to be very careful so as to get the best deal. Here are some tips that can help improve your chances of getting your mortgage application accepted.
1.Get a copy of your credit report:
Your credit score matters a lot. The credit report gives you an opportunity to see what lenders see when reviewing your application. If it doesn’t look pleasing, try to improve it. Simple tricks on improving your credit rating are to ensure that you are on the electoral roll and to close down credit card accounts which you no longer use.
2.Make a budget:
Before you apply for a mortgage, work out a budget. See whether you can borrow enough to cover the purchase of the property and have enough spare to cover all associated fees and costs.
3.Your employment history matters:
Your chance of getting a mortgage depends on the length of time you have spent on your current employment; the longer the better. You can try to hang onto your current job until you get a mortgage in case you are planning to switch to another job. It is good to have been in the current job for at least three months.
Your chances of getting a mortgage also increase if you have saved some amount as a deposit; and the bigger this amount the better.
4.Ensure that you don’t have debts:
If you owe a load of cash on credit cards or you have outstanding loans, then your chances of getting a mortgage may diminish. Before applying for a mortgage try to reduce or eliminate these debts. This will demonstrate to the lenders that you have god financial management ability.
5. Have a proof of income:
Get your form P60 from your employer. This is because the lenders will want to see a proof of how much you earn. You will probably be asked to provide six months of bank statements to check your income and expenditure.
If you are self employed it can be a bit tricky because the lenders will want to see a proof hat you will be able to keep up repayments. They will require you to furnish them with at least three years of books of accounts before they can give you a mortgage. You application is most likely to be rejected if you don’t have this information.
6.Buying with someone else can be easier:
If you have no hope of getting a mortgage on your own, you might think of buying with someone else. Chose a person with excellent credit history and higher income than you; but you’ll need to sit down and work out with the other person what would happen if one of you wanted to move in future since this is a big commitment.
7.Keep everything neat:
Once you have decided to apply for a mortgage, keep your application neat. Don’t start changing figures.
If you are unable to go through the whole application on your own, enlist the help of a mortgage broker. They can do thorough research on your behalf and ensure that you get the best deal.