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August 31, 2020

Are You Adequately Prepared for a Mortgage?

Are you approaching the point where you will need to be applying for a mortgage? Do you think that you are in a good position for this so that the process can run smoothly and get finalised quickly? Even if you are not yet considering making a mortgage application then you should still make notes because preparation is key and the things which you need to do can take months so it’s better to be aware of them well before you do look to acquire the funds to purchase a property. Many people can get themselves into serious predicaments by not being in the right place and not having done the correct things beforehand so you should spend your time going through this checklist and making sure that you are doing everything you possibly can to put yourself in the best possible position before you even contact someone to discuss a mortgage.

Employment Circumstances

A mortgage provider will want to see evidence of your employment. Not only will they want to see that you have a steady income but they will want assurances that this job role is stable and due to continue indefinitely. Therefore, it is advisable that you build up between 6 months to a year’s continual employment with your job before you apply. Having recently changed jobs will not give clear indications of stability in your position as you could well still be in a probationary period. It is important to either gain this experience before approaching a mortgage provider or stay within the same job for now.

Pay All Your Bills

It is very important that you are constantly keeping on top of any bills you are receiving. It doesn’t matter what type of bills they are you must ensure that they are all being payed accurately and they are all up to date. Failure to do this will send warning signs to a mortgage lender that you are potentially not reliable enough to warrant the receipt of a home loan. Conversely, paying everything properly will make you appear to be a valuable customer who will pay their mortgage repayments in a timely manner.

Pay Off Existing Loans

You should do everything in your power to pay off any previous loans you have taken out. By doing so you will be in a much stronger position to keep on top of your finances. If you have too many existing loans you could be outright denied a mortgage as the provider will worry that you are spreading your expenditure too far. Regardless of whether any current loans lead to a refusal or not you should try everything to get them paid off as you will then be juggling less repayments and it will save you a lot of stress and financial worries.

Show Evidence of Savings

As well as paying off any loans you might have already taken out you should be able to show that you have built up some savings. The mortgage providers will be able to see that if you are able to put aside a certain amount of cash every month then you are far more likely to be able to keep up with your repayments. Not only this but having some savings behind you will make sure that you have capital to put down on a deposit and it will also give you a monetary safety net to fall back on if needs be.

Boost Your Credit Rating

Your credit history is key whenever you need to secure any sort of financial loan, mortgages included. It is a very fluid indicator which can change quite drastically over a short period of time. It is imperative that you find ways to either maintain it if you are in a strong position or improve it if it could be better. Pay all of your credit cards on time and don’t just rely on minimum repayments. There are numerous services available where you can track your credit rating and by using them you will be able to monitor your performance over time and whether what you are doing is making your credit rating better or adversely affecting it.

Speak with a Mortgage Provider

Even before you are actually looking to get a mortgage it may be very helpful to seek the input of a mortgage adviser and explore the available options beforehand. Mortgages can vary enormously and what one lender can offer may be completely different to another. Loan providers will have online calculators which you can use to get a rough indication of your eligibility for a mortgage so make use of these aids in advance to avoid disappointment later down the line.

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