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Applying for a mortgage can be a daunting prospect, but with the help of a professional mortgage adviser it doesn’t need to be.
Why is it more
difficult than it used to be?
In the past, some people were allowed to take out a
mortgage they could not afford. This led to some of them falling behind with
their payments or losing their home. A mortgage lender must therefore check
that you can afford your repayments now and in the future. To do this they will
need information about your income and outgoings. So before you launch into the
application process there are a number of small things you can do that could
greatly increase your chances of getting your dream home.
Your credit rating
is important
Your credit score enables lenders to see that you have
the financial means and discipline that will be required to pay back your
mortgage. Key things lenders will check include your history of repayments, so
if you have any missed payments on credit cards, catalogues or any other
existing debts within the last three months, this may hinder your chances. Make
sure you have applied for your credit report and disclose anything that may affect
a mortgage application to your mortgage adviser, with their industry knowledge
they will be able to look at the most appropriate lenders for your situation.
Are you linked
financially to someone else?
If you’ve got financial links to someone else, for
example, a joint bank account from a previous relationship, you will need to ensure
that that link is removed as soon as possible. If that person makes a late
payment or has any other issue that affects their credit, it will reflect on
your own report and hinder your chances of getting the best deal. As before, if
you do think this may be a possibility let your mortgage adviser know as soon
as possible, forewarned is forearmed.
Take a good look at how you are managing your credit
When applying for a mortgage, your last three months’
account statements will come under scrutiny so it’s a good idea to prepare
ahead of time. When we talk about credit, we don’t just mean your credit card,
it is also your debit balances on your bank accounts and overdraft limits. You
should avoid things such as applying for credit in the run-up to a mortgage
application as this would not look favourable.
The important thing to remember is that every lender is
different in what they view as the ‘perfect candidate’ to lend to. Just because
you don’t fit one lenders’ criteria, it doesn’t mean you won’t fit another’s. A
mortgage adviser will be able to guide you through the process and advise you
on all your available options, helping you to get a product that suits your personal
needs and circumstances.
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