Everyone worries about getting approved for a mortgage, as it will have such a direct impact on your life. It may seem that getting approved involves jumping through endless hoops and an unattainable goal, but the truth is that it does not always have to be a huge ordeal getting approved if you plan ahead and stay organized. There are a few key steps that you can take which should help to push through your application so that you can get a mortgage and purchase the home that you have your eyes set on. Read on for a few tips on how you can get approved:
- Put Down A Large Deposit
First, it is a good idea to save as much money as you can to put down as a deposit as lenders will give the best rates for those that have large deposits. Somewhere between 35% and 40% of the property value will give you the top deals. This means that you should start tucking away money as early as possible – if you are struggling to do so, there are many effective ways to save money like cutting out unnecessary bills, walking instead of driving, buying second hand and buying non-brand products.
- Work Out What You Can Afford
It is also helpful if you have sat down and worked out what you can afford and the type of mortgage that you require, such as a fixed rate deal. It can be helpful to buy with somebody else, as this will allow you to save up a bigger deposit and improve your chances of getting a better mortgage than if you were to buy by yourself.
- Clear Or Reduce Debts
If you have any pre-existing debts, then it is a smart move to clear these if possible and to reduce them if not. A lender will be hesitant to provide a mortgage for someone who still owes a lot of money to other entities,and by clearing debt, it will show that you are capable of borrowing money responsibly.
- Get Documentation Organized
In order to get approved and to speed up the process, it is important that you have all of the relevant paperwork readily available and up to date. This will include:
- Driving license
- Proof of address (bank statement, utilities bill,)
- Proof of income
- Evidence of earnings if self-employed
- Check Credit Rating
Your credit score will be one of the main factors that determine whether or not you will get approved, as it demonstrates whether or not you have been a responsible borrower before. Check your credit rating as early as possible – it is possible to make improvements, but it can take a while for your rating to improve.
- Improve Your Credit Rating
Unless your credit rating is immaculate, it is always a good idea to take steps to improve your credit score, and there are many different ways to do this. Removing public records from your credit report is a good idea, as these can be a deciding factor as they will contain unpaid debts, legal liabilities, payment history and more – you can find out how to have public records removed at this site. Other ways that you can improve your credit rating include:
- Getting on the electoral roll
- Correcting any errors on credit report
- Close unused accounts
- Close joint accounts with anyone with poor credit
- Build credit history by using credit for small amounts and often
- Avoid Major Changes
Lenders want to know that you are reliable and stable. This means that it is a smart idea to avoid any major changes before applying for a mortgage, such as changing jobs or moving home. It is helpful if you have been in your existing job for at least six months before making an application,so that you are not in a probationary period.
- Speak To A Mortgage Advisor
‘It is always helpful to speak to a mortgage advisor because they will be able to give you advice based on your current situation. This will improve your chances of being approved and finding the right mortgage option for you with rates that fit with your financial situation.
”These are the main steps to take if you want to get approved for a mortgage and to secure one which works well for your situation. This can be a highly stressful time, and this is understandable as it is such an important moment, but by planning in advance and taking a few steps you can greatly increase the likelihood of getting approved.