To maximize mortgage approval there are 5 savvy expert tips that will help you get the mortgage you want. They are not difficult, but they are powerful.
If you are looking to buy your first home sometime soon, you’ll need to maximize mortgage approval and get your deposit together.This shows the lender that you are capable of saving, and makes you less of a risk when it comes to them loaning you money.
But even with a deposit, you can still be turned down for a mortgage, or not be offered the amount that you want for your dream home. It is true; a deposit doesn’t guarantee anything.
So how can you make sure that your mortgage is going to be approved?
Here are some of the top tips to help you to maximize mortgage approval, so you can get moving, get on the property ladder, and start building your dream home.
Maximize Mortgage Approval : Save a Large Deposit
For most properties, they say that you need around 20% of the house price as a deposit. But really, that can be the minimum, as discussed in this article by Vie Financial. Mortgage lenders offer their lowest interest loans to buyers with the largest deposits, sometimes, thirty or forty percent.
So in basic terms, it really does to save up as much of a deposit as you can.
Maximize Mortgage Approval : Check Your Credit Score
If you have a good credit score then you’re much more likely to benefit from the best mortgage deals, so you can get low-interest rates.
But before you arrive for your mortgage application appointment, it is a good idea to have an idea of what your credit score currently looks like.
It will stop there being any surprises, and if there is anything on your credit report that is incorrect, you will be able to correct it with plenty of notice.
Maximize Mortgage Approval : Pay off Debts
When you apply for a mortgage, your finances will be taken through a thorough investigation, so there is no use hiding what you have. If you have some unsecured debts, it can look bad on your application, as they want to know you’ll be able to pay them back each month.
Too much debt and you’ll be more of a risk. They also look at what credit is available to you and what you owe of that. If you owe a lot back, then again, it doesn’t look good.
The same goes for cards that are cut up and no longer used, for instance. Make sure that the account is closed, otherwise it will still come up as something that is credit that is available to you.
Maximize Mortgage Approval : Avoid Unusual or Risky Properties
There are so many houses out there and places to live, and you may have your eye on somewhere that is a little quirky. But the thing is, mortgage lenders like to know that they will be able to get their money back if you were unable to make the payments, for instance.
Which is why they are usually less likely to lend you money on a property that is a little different. If it is unusual or in a place that will be hard to sell on, then it does risk their chances of getting their money back should the worst happen.
Apartments above shops can often be a risk, as well as old buildings, listed buildings, and homes that are made out of materials that are a little unusual, like steel, for instance.
Maximize Mortgage Approval : Collate Documentation
As has been said, your finances will be looked through in great detail, and the mortgage lender will need to see that you are who you say you are and you are employed in the way that you say you are. So there are plenty of things that you need to get together for them to look at.
Things like your proof of address, identity documents, and employment contracts are all good places to start. Payslips from a few months will also be a good idea as it proves what incomes you have coming in each month, proving that you will be able to afford the monthly repayments.
If you received any other income, from a side-hustle or from any kind of benefit, then you need to let them know about that too. Leave no stone unturned and it will make the whole process much simpler.
The process can be lengthy, but if you want to get on the property ladder, then it pays to do your research and know what kind of mortgage you are looking for.
Then you can go in all prepared, and much more likely to get the mortgage that you want.