Securing a mortgage can be one of the most stressful parts of buying a property, but there are some simple but effective ways to make the process as simple as possible. For those who have a poor credit score, securing a mortgage can prove a challenge, but sometimes people use guarantor loans to consolidate their existing debts which makes them much easier to manage. But, your credit score is the only thing you can work on when it comes to getting a mortgage. Here are some ways you can improve your chances of securing a mortgage and take the stress out of the process.
Have an Understanding of What Lenders Look For
Mortgage lenders look for house buyers that can clearly afford repayments so proving that you can do that will vastly improve your chances of securing a loan. Working out your personal finances and how much you can afford to borrow will help you make applications that you are far more likely to be approved for. As well as looking at how much you get paid from your job, mortgage lenders will also look at your outgoings and how much existing debt you owe.
Stay On Top of Your Credit Score
It is generally considered that the better your credit score is, the more likely you are to get approved for a mortgage. Your credit report is essentially a financial portfolio and contains all of the information a lender needs to determine whether you are safe to lend to or not. It’s very important to check your credit report on a regular basis to ensure all of your personal information is correct because sometimes mistakes can be made.
Reduce The Amount of Debt You’re In
Lenders will take a look at how much money you owe when deciding whether to grant your mortgage application or not. This is because outstanding debt will affect how much money you have to make the monthly repayments. Reducing the amount of debt you are in before applying for a mortgage will improve your chances of being accepted.
Save As Much As Possible
Saving as much as possible for a deposit will increase your chances of securing a mortgage. It will also allow you to access better deals with significantly lower interest rates. In the current property market climate, you need to save a minimum of 5% of a property’s price in order to secure a mortgage. If you are finding it hard to save for a deposit, some lenders may be able to offer you a 100% mortgage loan but only if a member of your family can act as a guarantor to secure it.
Prepare Your Important Documents Carefully
It is absolutely crucial to prepare all of your important documents carefully before applying for a mortgage. Any delay in getting your important documents over to a potential lender is only going to delay the process. You must also take a lot of care when filling in your application forms as mistakes could result in the applications needed to be resubmitted for consideration.
Get Yourself Onto The Electoral Roll
You might not be aware that registering yourself on the electoral roll actually increases your chances of securing a mortgage. The majority of lenders use the electoral roll to confirm that you are who you say you are. In fact, some lenders might even reject your application if you are not registered. To register all you need to do is go on GOV.uk and fill out an online form. To avoid any problems, make sure that all of your details are up to date.
Shop Around for Mortgages
Finding the best mortgage deal is very important, which is why it’s a very good idea to shop around and look at what different lenders offer. After all, you could save a lot of money when finding the right deal. An increasingly popular option amongst homebuyers is that they are now using online mortgage brokers to find them the best mortgage deals.