As a Guildford mortgage broker, it’s sometimes easy to overlook the fact that, for many, getting a mortgage can be a daunting task.
Of course, it’s the job of our team of Surrey mortgage brokers to make the process as seamless as possible (which, as you can see from our 400+ Google Reviews, we do well). However, there are aspects that the customer can do, by way of preparation, to make the mortgage application process even easier.
So, in order to get your mortgage signed, sealed, and delivered in the most efficient, stress-free and brisk way possible, we’ve compiled the top five areas of documentation required to get your mortgage application underway – and give yourself a head start!
1. No identity crisis
Okay, so this one isn’t going to surprise anyone. Lenders require proof that you are who you say you are, so make sure that you have ready access to your passport or driver’s licence when the time comes. It’s also important that these documents are valid and up-to-date. So, if either of these documents have expired or are about to expire during the window in which you’re likely to apply for a mortgage, make sure you leave plenty of time to renew them.
2. Confirmation of address
Again, no surprises here. However, going back over emails (as hardly anything is posted these days) to dig out council tax bills and utility bills can take time. Gathering it all in one file – and in good time – is a way in which to save time further up the line. It also reduces time spent to-ing and fro-ing between you and the mortgage broker once the process is underway. Just remember that lenders typically require statements that are current. Statements from the previous three months are fine. Statements further back than this are likely to be rejected.
3. Money talks
Given that your earnings underpin a lender’s decision to lend, proving how much you earn is a crucial part of the pre-mortgage application preparation. Broadly speaking, this is broken down into two camps: employed earnings and self-employed earnings.
If you’re employed, then gathering your last three months’ payslips and your current P60 (which demonstrates how much tax you’ve paid) will do the trick. If you’re self-employed, then you’ll need at least two years’ worth of SA302 documentation, which evidences self-employed earnings. You’ll also need the associated tax overviews, too. If you use an accountant, they should be able to send this information to you.
4. Bank on it
Bank statements form a crucial part of a lender’s decision to lend – so bank on being asked for them. Generally speaking, lenders typically require three months’ worth of bank and credit card statements. However, our team of Guildford mortgage advisers prefer to have the last six months to hand, just to cover all bases. Just bear in mind that lenders will pore through these with a fine toothcomb in order to get a sense of your financial commitments and spending habits.
Our recommendation is that if you know you’ll be applying for a mortgage any time soon, then delay those non-necessary and avoidable purchases until the mortgage has been offered. In doing so, you’ll avoid painting a picture of reckless spending, which will work against you.
5. All credit considered
Make sure that you can show ALL of the loans, hire purchases, leases and credit cards that you currently have in place – and remember, there’s no hiding. Presenting all of your financial commitments and obligations makes it easier for the lender and quicker for you when it comes to getting a decision on a mortgage. However, it’s important to note that even if you don’t put everything forward, the loans you hold will, eventually, be discovered.
As credit commitments often represent a significant outgoing, they play a key role in determining how much you can borrow as a mortgage. Being transparent when it comes to your financial commitments will expedite the decision and leave you knowing where you stand much quicker than if you only supply partial documentation.
Ready to apply for a mortgage? To speak with a mortgage broker in Guildford, contact our team of Surrey mortgage advisers today by calling 01483 238280 or e-mailing info@complete-mortgages.co.uk.
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