Are you dreaming of buying your first home? Getting the best possible mortgage deal is key to making that dream a reality. But how do you ensure that mortgage lenders see you as a low-risk borrower? Here’s the scoop: mortgage underwriters at banks look at various factors like your income, expenses, and available deposit to determine whether to lend to you. Each lender has its own set of criteria and lending rules. But don’t worry! With a bit of preparation, you can make your mortgage application shine.
Here are some fun and practical tips to improve your odds of getting a mortgage.
### 1. Check Your Credit Report
Your credit report is like your financial report card, and you want it to look as good as possible. Start by checking your central credit register report and fixing any errors. It’s also important to make sure you’re not financially linked to any ex-partners or old flat mates. If those relationships are over, make sure any joint financial commitments are also closed. Clean up your credit report to make a sparkling first impression to lenders.
### 2. Build Up Your Savings
Having a solid savings account can really make your mortgage application stand out. Open a dedicated savings account and consistently deposit money without making withdrawals. This not only boosts your deposit but also shows lenders that you’re disciplined with your savings.
### 3. Pay Your Bills on Time
Paying your rent and bills on time is crucial. It demonstrates to lenders that you’re reliable and can manage regular payments. Also, try to stay out of your overdraft. It’s all about showing that you have control over your finances.
### 4. Avoid New Loans
Applying for car or personal loans before submitting your mortgage application can hurt your chances. Lenders don’t want to see you taking on new debt, so try to avoid new loan applications in the months leading up to your mortgage application.
### 5. Keep a Stable Job
Lenders prefer applicants who have a stable job. If you’re considering changing jobs, it might be best to hold off until after you’ve secured your mortgage. A steady employment history makes you look more reliable.
### 6. Reduce Outgoings
Take a close look at your monthly expenses and see where you can cut back. Everyone has expenses and the mortgage lender is not going to hod the odd night out and takeaway against you. However, reducing your outgoings can make you a more attractive borrower. It’s a good idea to start living on a tighter budget in the 6 months before applying for a mortgage.
### 7. Get a Mortgage Approval in Principle (AIP)
A Mortgage Approval in Principle (AIP) is a promise from a lender saying that they’ll lend you a certain amount, based on your financial situation. It’s not a guarantee, but it shows sellers that you’re serious and can afford the property. It also gives you a clear idea of how much you can borrow.
### 8. Seek Professional Advice
A mortgage broker can be your best friend in this process. They know the ins and outs of different lenders’ criteria and can help you find the best deal. Plus, they can offer valuable advice to get you ready for mortgage success.
### Conclusion
Securing a mortgage doesn’t have to be a stressful process. By taking these steps, you can significantly improve your chances of getting the best mortgage deal. Remember, it’s all about preparation and making yourself as attractive as possible to lenders. So, start early, stay organized, and don’t hesitate to seek professional advice. Happy house hunting!
Got questions or ready to start your mortgage journey? Get in touch with one of our friendly and professional MortgageLine Advisers today! We’re here to help you every step of the way.
