If you have decided that the time has come to invest in a house of your own, the first thing you need to do is get a mortgage. While you might have enough for a deposit, you will probably need to get a mortgage loan to cover the main cost of buying a property.
Getting a mortgage is a big commitment – it is probably the largest financial commitment that you will ever make. That’s why it is so important that before you go ahead with getting a mortgage, that you know how to get the best deal and how to get accepted.
Did you know that there are plenty of ways you can ensure that your mortgage application is accepted? No – then make sure to keep reading our top tips, below:
Understand that your credit score matters
The first thing that you need to do is understand that your credit score is important and matters in terms of your mortgage. So before you start applying for mortgages, request a copy of your credit score from a specialist credit company to see what score you have.
If your credit score is in the green, that’s great, you shouldn’t have any problems getting a mortgage. If, however, your credit score isn’t looking so good, you may struggle to get a mortgage. In this case, it’s best to spend some time improving your credit score before applying.
Know how much you want to borrow
Before applying for a mortgage, sit down and work out how much you need to borrow. Take your deposit amount into account, and then work out how much extra money you need to get a property.
You need to make sure that the amount that you want to borrow will be affordable to keep on top of and that you will be able to make each payment on time. You also need to consider how long you want to pay it back over – 10 years, 20 years, or longer?
Do your research on mortgage lenders
Once you have worked out how much you need to borrow and how long it will take you to pay it back, the next step is to look for mortgage lenders. You will probably find that there are a lot of hard money lenders – aka mortgage lenders, online.
The key is to opt for the company that will give you the amount that you need, allow you to pay it off over time, and offers low-interest rates. Before selecting any company, make sure to do lots of research into them, reading all the small print.
Choose a mortgage lender and apply
Once you have found a mortgage lender that offers the type of loan that you are looking for, the next step is to apply. This can be a lengthy process, as there are lots of forms to fill out and criterias that need to be met.
As well as having a good credit score, you will also need to provide proof of earnings. You may also be required to prove that you don’t have any outstanding debts, as this can prevent you from being able to get a mortgage.
Getting a mortgage isn’t easy, it can be a long process. You will find that if you are self-employed, on a low income, have a low credit score, or are in debt, that it will be more tricky to secure a loan. However, it isn’t impossible. Ensure that your finances are on track, and then apply for a mortgage loan.