As we covered in one of our recent articles, there is a lot going on right now – mainly as a result of what is viewed by many as a chaotic US presidency.
But there is always a lot going on in the mortgage markets, too. And irrespective of what’s going on overseas, when it comes to applying for a mortgage, there are some key things that are worth keeping in mind; the mortgage dos and don’ts, if you will.
So, regardless of whether you’re about to apply for a mortgage in a turbulent economy or have decided to wait until more stable times (if they’re ever coming!), these tips should help you avoid common mortgage pitfalls and ensure that your mortgage application runs smoothly … even if everything else in the world isn’t running quite so smoothly.
As a Guildford mortgage broker that has seen its fair share of global chaos and uncertainty since we launched the business in 2005, here are our top six tips on how to get a mortgage.
1. DO … Get it the right way round
Our team of Guildford mortgage advisers have lost count of the number of people who begin looking for a property before they have any idea as to whether or not they can actually get a mortgage. Not only does this have the potential to be heart-breaking for people who find their dream home and then can’t get a mortgage (or can’t borrow the amount they need, at least), but it could also result in a huge amount of time being poured down the drain.
The solution is simple. Get a mortgage in principle in advance of going property shopping. In doing so – and as your credit rating would have been checked as part of the application – you’ll know where you are in terms of what you can afford. Not only that, but the estate agent is likely to take you more seriously as you’re not at risk of slowing the process down once you’ve made an offer.
2. DO … Check your credit report
We have covered this extensively in the past. However, as a mortgage broker in Guildford that has witnessed people just miss out on being able to borrow the amount they needed as a result of not being on top of their credit report, it’s worth reiterating here.
You can easily access your credit report and get a sense of how good (or, how bad) it is. By doing so, you’ll come to a quick understanding of how a lender might view you. If it’s good, then you’re likely to be viewed favourably. If it’s bad, then there are probably some steps you need to take before you commit the time to apply for a mortgage. Not only that, but things like unused bank accounts tend to work against you, so your credit report will highlight what can be closed in order to boost your rating.
3. DO … Use a mortgage broker
If you’re not aware of the benefits of using a mortgage broker, then it’s worth getting up to speed. Mortgage brokers arrange mortgages for a living. As a result, we know what we’re doing, understand where we can take shortcuts and quickly be able to establish how to bolster a mortgage application in a way that the uninitiated wouldn’t. But perhaps more importantly than that, we can access the best UK mortgage rates (many of which aren’t even available on the high street) and will handle the entire mortgage application – from beginning to end – on your behalf. In summary, mortgage brokers save you time, get the best mortgage deals and use their professional knowledge and experience to get you where you need to go.
4. DON’T …Mispresent the financials
Nobody likes a fibber, and nobody more so than a lender. If you bend the truth when it comes to how much you earn or spend each month, the only person you’re cheating is you. Before a lender lends, comprehensive checks are undertaken to make sure that you can afford to repay what you say you can afford to pay. Banks like to get it right, and to do that they avoid taking unnecessary risks. If you can’t afford to repay the amount you’re looking to borrow, it will become very clear, very quickly. We recommend being truthful from the outset, not just to your mortgage broker or lender, but to yourself with regards to what you can really afford.
5. DON’T … Borrow or spend (heavily) in the run up to the application
If you’ve applied for a mortgage in the past, then you’ll know that the rule of three applies. Lenders generally want to see three months of bank statements, three sets of accounts and three sets of payslips in order to evaluate your affordability. The same applies to what you’ve spent and borrowed in the lead up to applying for a mortgage. So, to avoid creating any unnecessary red flags (especially self-inflicted ones), don’t take out any loans or make large purchases until after you’ve secured a mortgage. Anything that makes it look like you like to spend might be viewed as reckless in the eyes of the lender. Once you’ve got your mortgage, then it’s a different story.
To discuss how to increase your chances of getting a mortgage, contact our team of Guildford mortgage advisers on 01483 238280 or e-mail info@complete-mortgages.co.uk to find out how we can help you.
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