Finally ready to take the plunge and step onto the property ladder. Want to make sure that your home mortgage loan is approved first time without any fuss? There are several things that you need to do first if you’re going to make that mortgage a reality. Before you talk to a lender, do these things, and you’ll be buying that perfect property in no time at all.
Check Your Credit Score
When you’re applying for any kind of credit, whether that it be a credit card, car loan or mortgage, the first thing that any lender will do is check your credit score. If your score is high and you’ve had no debt problems in the past, you’ll likely be a good candidate for credit. If, however, you have a poor score, whether that’s because you’ve never had a line of credit before, or because you’ve struggled to repay debts in the past, you’ll be a much less attractive prospect.
If you fall into the latter category, don’t worry because there are things you can do to increase your store. First, take a look at the best credit repair company software, to see how your score can be improved, then put everything you learn into action. It might take a while, but once you’ve bumped up that score, the lenders will love you, and you’ll get that mortgage you so desire.
Save, Save, Save
You’re much more likely to get a home loan if you have a decent down payment because not only is it a requirement of most mortgages, but it also shows that you are a sensible person who can manage your finances.
In most cases, the minimum required down payment will be around 3.5 percent, but if you can save around 20 percent, you’ll be a better prospect, avoid having to pay mortgage insurance and get that loan without any problems.
Unless you happen to be a billionaire, there is no way you’re going to get a mortgage if you don’t have a secure job. So, now might not be the time to quit your job and set up a business, or to slack off and run the risk of being fired. Work hard, stick with it and once you’re settled into your new property you can start thinking about making those big life changes you’ve always dreamed of.
Pay Down Your Debts
If you are currently in debt, it couldn’t hurt to make a serious effort to pay down what you owe before you try to buy a new home. You don’t need to be completely debt-free to get a home loan, but if you’re overstretched, lenders are going to worry about your ability to manage year another expense, and that could be enough for the to back off. So, tighten your belt, overpay your debts and improve your situation today.
Although there’s a bit more to getting a mortgage than we’ve discussed here, all of the tips above will help, and they will get you into a position where more lenders think you’re a good bet. Put them into practice, and you’ll have the keys in your hand in no time at all.