If you’re looking to move to a new home or buy your first house, it’s likely that you will need to borrow in order to get it. Getting a mortgage isn’t always easy, but there are some ways to get your finances in order so you’re prepared for a mortgage and have the best chances of getting one with a reasonable interest level.
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1.Save the biggest deposit you can. Mortgage providers will reserve the lowest interest rates for people who have large deposits saved up. The top deals on the market are limited to buys can put down a sizeable amount of the properties value, whereas those with smaller deposits saved will end up paying a higher rate. Save up as much deposit as you can manage, whether in a savings account or via schemes for first-time buyers to help you save up as much as you can.
2.Know your credit score to avoid surprises. If you’re going to qualify for the best mortgage deals, you’re going to need a good credit score. Speak to a mortgage provider like Altrua Financial to find out what your options could be with your current credit health. Use a credit monitor service to run a ‘soft’ check on your credit score. Soft checks don’t leave a mark on your credit score but you can get an idea of what’s going on with your finances. If you know what’s going on, you can avoid any nasty surprises when you apply for a mortgage.
3.Pay off unsecured debts and close unused accounts. When they’re deciding whether or not to take you on, a mortgage lender will look at the amount of credit that is available to you, and the amount that you owe elsewhere. Try to clear as much of your debt as you can, and close any accounts that you aren’t using any more. Without taking these steps, you might find that a mortgage lender is worried about your ability to keep up with your mortgage repayments.
4.Avoid unusual properties. A mortgage lender will like to know that they can get their money back if your default on your payments. This can end up that they are less willing to lend against a more unusual property that they deem as being harder to sell on. This can include properties like apartments above commercial premises, old or quirky buildings, or a house built using more unusual construction materials like concrete or steel.
5.Have all your documents prepared. No mortgage lender will be willing to take you on as a customer if you can’t prove who you are. Make sure your passport is up to date and that your driving license has all the correct information on it too. You will also need to have something like a bank statement or a bill to prove your current address. Some lenders will expect to see bank statements or payslips to prove your earnings and your ability to pay off your mortgage. If you receive any benefits, you will need evidence of this too. Have all these documents ready to show to make the process smoother and faster.