Applying for a mortgage can be tough. Although there are a great number of different mortgage deals out there, it is difficult to find the right one and difficult to be accepted if you have any of the following problems. Make life easier for yourself and don’t do any of the following right before you make your mortgage application.
- Change Jobs
A mortgage lender will like to see that you have been with the same employer for some time when you apply for a loan, according to flagstone.co.uk. Every lender is different but in general you need 12 months with the same employer. Increases your chances of success by scheduling a job move for after you have secured your mortgage.
- Get into Debt
A lender will assess your ability to repay the loan by looking at what other debts you have and the repayments you make. It is not a good idea to take out a credit card or spend thousands on a store card right before your mortgage application. Beware also of cards and accounts with maximum spending limits you are not using – some lenders add up the debt you have by assuming you have reached the maximum balance on all your cards. Try to pay off as much debt as you can before you apply, and close down any credit cards or account you no longer use, says flagstone.co.uk.
- Ignore Your Credit Report
It may be tempting to stick your head in the sand when it comes to your credit report but when you are applying for a mortgage, knowledge is power. If your credit report is poor because debts still appear after they have been repaid, or if someone has been making fraudulent applications under your name you need to deal with it. And if your credit score is poor because of your current activity, think how you can deal with it now for the future.
- Ignore Your Parents
Buying a home for the first time can be tough, particularly if you are relatively young. Don’t ignore the help that your parents can potentially give you. They could, for example, lend you money for a deposit. Or they could act as a guarantor for the mortgage, which is a good option if your parents are financially well-off. Or they could help buy the property with you. All of these options are good for families where you can agree on terms and conditions upfront so everyone is happy with the arrangements.
- Go it alone
Don’t try to do all the research and searching for a mortgage yourself. Enlist the services of a professional mortgage broker who can assist you in finding the right deal. A broker will be able to see the whole market and can also advise you based on your personal circumstances and their experience can reveal options you may have missed.