Getting the funds together for a home deposit is one thing, but actually getting approved for a mortgage is another. First-time buyers have been finding it increasingly difficult to get on the property ladder due to soaring mortgage rates. Making small changes could be 'make or break' for a mortgage application. Here are some tips to increase your chances of getting approved for a mortgage.
Get a mortgage in principle
A mortgage in principle is an official estimate from a lender of how much it's willing to lend to you based on what you can afford. It can be a pretty useful thing for those hunting for a first home because it shows that you're a serious buyer. To get an agreement in principle, you can either go to a mortgage broker or go directly to the lender that's offering a deal that you're interested in.
Get mortgage advice
Visiting a broker six months in advance can be useful to help you work out what your maximum purchase price will be. A broker will be able to review a wider range of products and advise you on the right one for your circumstances, as well as assess any hidden costs which can sometimes be difficult to find.
Check your credit score
Make sure that your credit score and history are in the best shape possible to ensure a lender will look favorably on your application. You can check your credit file for free on websites like ClearScore and Credit Karma. Having a healthy clean credit file will mean you benefit from getting the best rates available for your situation.
Don't take on debt
Avoid applying for any new credit at least three months before getting a mortgage. Your lender will be aware of this new payment and wonder if you're over-stretching your finances.
Avoid changes in circumstances
Trying to get a mortgage when you have gone through a lifestyle change can be stressful. Lenders look at your outgoings alongside your income, so big changes to your income could impact your application. Changing jobs regularly or going from employed to self-employed can have a detrimental effect on your mortgage application.
Share your information
When you apply for a mortgage, you must be truthful and honest to the mortgage adviser and the lender. Withholding information or not disclosing information can result in a lender pulling the mortgage at the last moment. Being honest with the lender will help them to understand your circumstances and lend responsibly, which benefits you in the long run.
By following these tips, you can improve your chances of getting approved for a mortgage and finally get on the property ladder. Good luck!
Did you miss our previous article…
https://hellofaread.com/money/countryside-retreat-mansion-worth-3million-in-gorgeous-cotswolds-and-100000-in-cash-could-be-yours-for-just-10/
