24 Jan Five steps to becoming mortgage-ready in 2022
Getting a mortgage can sometimes feel like an uphill struggle. With the surge in homeowners and first-time buyers looking to move, how do you know if you’re ready?
Here are a number of things you need to consider before applying for a mortgage in 2022.
Have you reviewed your finances?
At least six months before you look at applying for a mortgage, you need to ensure all of your finances are in order.
– Avoid applying for too many credit cards or other loans.
– Don’t miss any payments on outstanding debts.
Boost your credit score
In order to loan money from the bank, you need to make sure you have a strong credit score.
This serves as evidence that you can keep up with the monthly payments.
Being linked to someone with a poor score can reduce your chances of being approved.
Save for your deposit
The size of your deposit will impact the rates that you’re offered and the amount you can borrow.
It is also worth noting that an increasing number of lenders are now paying closer attention to how first-time buyers are saving, and whether they have had to rely on financial support family members.
Have a dependable income
Your employment status and income will be looked into when applying. Lenders need to know if there is a stable income that can cover repayments.
Try holding off any job moves as it may raise concerns about your suitability. Be prepared to provide bank statements, any P60s and proof of deposit.
Register to vote
This is a simple step that is often forgotten in the process of a mortgage application.
Sometimes lenders will use the electoral roll to check things such as names and addresses.
Don’t forget registering to vote also improves your credit score!
As with all important financial decisions , it is important to speak with the most relevant experts to ensure you are fully prepared and protected.
If you would like to request a consultation with a recommended mortgage advisor, please let us know.