Getting a mortgage nowadays might seem like an arduous ordeal. However, there are ways for you to improve your odds. We advise seeking a mortgage broker to help you along the process. Eden Hawk is an independent mortgage broker based in Cardiff. They help you find the right lenders and ensure that you are eligible for you to get the best mortgage deal possible. Below are the best tips for getting a mortgage.
Check Your Credit Score
Before obtaining any mortgage, you need to put all your credit affairs in order. All lenders will begin with your credit report before they consider lending you a mortgage loan. This should be the best time for you to attain credit monitoring. It enables you to prove to lenders about your creditworthiness. Furthermore, it helps you find lenders who will offer you the best rates.
Ensure that your credit report is accurate and your score is within the range you would like it to be. Likewise, always ensure that no one else has access to your credit since they might end up harming your scores. Obtaining your credit score also helps you see what the lenders see when assessing your application.
If you have a low credit score, worry not; there are plenty of things to do for a score boost. For starters, you can close down all credit card accounts that you don’t use.
Register to Vote
If you’re not a registered voter, you might scupper your chances of getting a mortgage. Even with a perfect credit score, most lenders will use the electoral roll to conduct identity checks. Lenders want to deal with people who truthfully state their addresses. This is information they can finally find on the electoral roll. Likewise, this provides the lender with some peace of mind that you’re not a money launderer.
Checking with your local council is the best way of knowing whether you are on the electoral roll or not. Doing this in advance enables you to register if you hadn’t already. Besides, it’s something that might take a month for you to be added to the roll.
Do Your Homework
Always remember that you are looking for a home and making a lasting financial commitment. Therefore, you need to research the best homes as well as loans. This allows you to find lenders who can provide you with the best rates. Furthermore, you can research all the different brokers and loan amounts before you commit to anything.
Even if the work homework makes you shudder, it’s advisable to do all the hard work not since it will pay off down the line. That’s by obtaining better terms and rates that you can easily handle over the years.
Proof of Income
Most lenders will want to know how much you earn and see some proof. Therefore, you will need a P60 form that your employer provides annually. The form will help show a summary of your pay. It will also highlight the tax that’s deducted from your income. Some lenders can go a step further and request three months of payslips and bank statements.
Having this information readily available ensures that the lender can know how much you earn and spend. As a self-employed person, getting a mortgage isn’t arduous. All you need is proof that you can make all the mortgage repayments. Most lenders will need an SA302 form from the last three years. Others might request your bank statements for the last three years. You only need to prove and give them assurance that they will have their money back. When you have a monthly income and you prove that then you will just have to give some information then you will be given the mortgage
Eliminate All Your Debts
When submitting a mortgage application, you want to ensure that you don’t have any debts. You don’t want the lenders to see that you have plenty of outstanding loans. Clearing out your debts will help the debtors know that you will make all the repayments. Furthermore, you don’t have to finish off these debts; the goal is to minimize them to demonstrate that you are financially responsible.
The more savings you have, the larger deposit you will put down. This will minimize the amount of loan you will need from mortgage lenders. If you have a hefty deposit, you might come across some lenders who have better rates. This will mean lower monthly payments because you will have lots of great deals from some lenders. Look for a home that you can afford and one where you can afford to make a larger deposit.