28 Jun How to avoid mortgage red flags as a prospective homeowner
Taking your first step onto the property ladder can seem daunting. There are a number of unfamiliar hurdles and legal requirements on the way to homeownership, but with the right support network, it can be efficient and pain-free.
According to recent data, around 35% of first-time buyers have experienced mortgage rejection, with certain brokers and lenders detailing unusual money mistakes as the main factor behind this.
To give you the best chance at getting approved the first time around, here are the red flags you should look to avoid.
Joke references when transferring money
What may seem like a joke amongst friends could turn out to be a very costly mistake.
Joke references can actually cause a delay in the mortgage process, so be careful and sensible when choosing your reference names.
Betting or gambling transactions
An occasional bet on something like the national lottery won’t have an impact on your application.
However, regular betting will be weighed up by lenders, who will decide if you are in a position to comfortably pay your mortgage each month.
Serious problems can arise from excessive gambling, but few take into consideration what the repercussions could be when looking to buy a house.
Making a big splurge purchase or giving money
Now, we aren’t telling you to not give money, but lending and spending large sums of money can raise questions from lenders.
The same applies to making a high number of purchases in quick succession, even if it is something for your future property, such as furniture.
Seeing less money in your bank than usual can cause delays throughout your mortgage process if calculations don’t quite add up.
Struggling to wrap your head around your mortgage options? Talk our financial experts today, contact us for more information.