Taking out a secured loan or mortgage is a huge financial commitment. Hence, you must find the best deal possible. Did you know there’s a lot you can do to boost your chances of getting your mortgage application accepted?
Here are some tips to help you get mortgage without any hassles:
It really helps to get a copy for credit report before applying for a mortgage loan. This is usually held by credit reference agencies. The report will help you know what lenders see while reviewing your application. In case, the report isn’t impressive, give it a boost by paying up your bills and debts. Closing down credit card accounts that you no longer use can also help.
Don’t Change Job
A mortgage broker Bromley would want you to see that you have been with your employer for a longer period of time prior to approving mortgage. So try to postpone your job switch plan until the mortgage is in place. Being in an existing job for at least 3-6 months prior to applying is crucial.
Debts can be a Big Problem
Your prospective lender would not want to see you in debt. So make sure you do not owe huge amount of cash on credit cards. There shouldn’t be any outstanding loans. Reduce this burden as far as possible before applying for a mortgage. It is important to show you can manage your money responsibly and help you to borrow.
Income Proof / Accounts
Most mortgage lenders will ask for proof of income. So keep a P60 form that you receive from your employer every year. It is a sum up of your pay and the tax deducted. Bank statements for 3 months with inflow and outflow of money proofs may also be required. Being self-employed can come in your way of getting a mortgage. Lenders will also for proof of repayment capacity (SA302 form for last 3 years from HMRC or full accounts for 3 years). Not having these documents can disqualify you from getting mortgage.
It is always better to make bigger deposits. So save up as much as you can to put down as a deposit. The effort will help you get approved for bigger mortgages. You will get numerous choices. Lenders reserve their best rates for those with substantial deposits. You can benefit from lower monthly payments by getting qualified for a better deal.
Combined Purchase is Easier
Most people aren’t aware of this. When you buy with someone else, the process becomes easier and affordable. It will cut down on your requirement of making a hefty deposit on your own. The process also boosts your chances of securing a good amount of mortgage (if the other partner has excellent credit history and higher income). Although a lucrative strategy, it is a huge commitment. It is important to get into a deeper discussion with the other person on situation where one of you may wish to move.
No Cuts No Changes
Strictly avoid chopping and making edits to your application. After starting off with your mortgage application, strictly avoid messing around with it. Do NOT change figures. Such activity can hold up your property purchase. According to experts in the industry, making changes in figures can prompt experts to reassess the application. Although this isn’t a serious issue, it leads to unnecessary delays.
Ask for Paid Help
In case, you are struggling to find the right mortgage deal or are confused about the exact amount you can actually borrow (eligibility), get in touch with the experts. They are the best people to let you know about these details. So seek consultation from an experienced mortgage broker. These professionals can reach to the marketplace for you and help you know about the best deals and even through the application process.