When you apply for a mortgage, the lender will consider all aspects of your circumstances before approving or rejecting your application.
Some factors you cannot change but others could improve your position. Here are five tips for first time buyers.
Control your outgoings
Before you apply try to cut down on as many debts as possible and minimise outgoings like magazine subscriptions, mobile phone contracts and tv services. Outstanding credit cards and loans should be paid off in full, if possible.
Increase your deposit
The larger your deposit the lower amount you need to borrow and the less risk you will pose to the mortgage lender. By reducing your loan to value ratio you may also secure a lower mortgage interest rate.
Know your credit score
Your credit score improves if you consistently pay back on time and will reduce if you miss or default on payments. Lenders will check with the credit reference agencies when assessing your application. A poor credit score may lead to your application being declined. In this event you will have to spend time improving your credit file before applying for a mortgage in the future.
Find a broker with Best Mortgage Services
Mortgage brokers know their stuff and will ask the relevant questions and study your documents before submitting the application. The usual documents required are 3 months payslips, 3 months bank statements, proof of identity and proof of address.
Register on the Electoral Roll
Register on the electoral roll and make sure any bills you have are registered to your current address. Registering on the electoral roll may also improve your credit score. It is important that the information on the mortgage application matches when the lender searches the electoral roll and your credit file.
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