Your Essential Guide
If you are getting ready to apply for a mortgage, it makes sense to present yourself in the best possible light. Or maybe you have been turned down previously and don’t know where to go from here. Don’t worry, we have some great tips and tricks on how to make yourself look like the perfect borrower. From seeking expert advice on mortgages to some things that you can do yourself, here is what you need to do before you submit your application.
Work with a mortgage broker
One of the first things you should do is get in touch with a trusted mortgage broker. They will handle your application for you, liaising with the lender on your behalf. They know what lenders are looking for and will make sure that you are presented in the best possible light.
If your mortgage application is more complex, perhaps thanks to being self-employed or having a poor credit score, then they will make sure that all the right information is supplied. So the lender will have far fewer questions!
Pay off your debts
We know that no one wants to hear this, but paying off your debts is one of the most effective ways to make yourself look more attractive to a lender. If you have credit cards, aim to pay at least 10% of your balance every month rather than just meeting the minimum. If you are paying back multiple loans, see if you can consolidate them into one monthly payment to make it easier to keep track of and potentially save on interest.
Improve your credit score
Your credit score is one of the first things that a lender looks at. If yours is looking a little shaky, it’s time to improve it! Things like being on the electoral roll and paying utility bills on time can make a huge difference. It’s also a good idea to take a look at your credit file so that you can see if there are any errors that are dragging your score down.
Spend less
We’re not asking you to go without all of life’s pleasures. The reality is, though, excessive spending can be off-putting to lenders. If you have multiple subscriptions, trim them back to the ones that you really can’t go without. If you want to get a new car on finance, maybe hold off on that until you have been approved and are settled in your new home. Every little bit of money saved helps.
Be willing to accept a longer mortgage term
No one wants to be paying off their mortgage for longer than they have to, but a longer term will bring your monthly payments down. This will really boost your borrowing potential. Most lenders are willing to provide longer mortgages. Just remember that the longer the term, the more interest you will end up paying over the life of the loan.
There you have it!
There are so many ways to make yourself into the kind of borrower that lenders love to work with. Why not talk to a mortgage broker today? They will be able to provide expert advice that is tailored to you.
